Hi everyone, my name is Eric. I came across this forum searching for a rental property analysis spread sheet. I have been lurking for a while, but decided to join since there is so much interest from Australian investors in the US market.
So any questions you have ask away and I will do my best to help you get the answers.
Hi Eric,
Yes you have picked up on the amount of interest that Australian’s are expressing in the US real estate market. I’m not sure if you know much about the Australian real estate market but as a comparison…..in my local market….the average price is about AUD$400K and you will rent it out for approx AUD$380 per week. Our mortgage rates are around 7%……all up your getting a negative cashflow and the chance of capital growth. To buy a property in this price range will cost you approx AUD$25K in government fee’s & charges.
Taking this into account you don’t need to be Einstein to see why us Aussies are showing such an interest in the US market. So from an American’s point of view……where would you invest if you personally had the opportunity ?? Better still….why ??
Hi Eric,
Welcome to the forums. Great to see you have joined us on here.
Can you tell us a bit more about yourself. Where in the states are you from, what's your previous/current involvement in US property?
Andrew
itsandrew
Go as far as you can see and you will see further.
Its funny because the market condition you describe in Australia is very similar to what we experienced over here in 2005-2007. I started looking for rental property and couldnt find any with positive cashflow. Now that prices have dropped they are everywhere.
Markets I'm interested in are Phoenix AZ and Las Vegas NV.
These markets exploded in 2005-2007 by insane amounts. They were among the fastest growing cities in the nation. Right now homes in those markets are worth 30% what they sold for just two or three years ago. These markets are in a hot dry climate, no need to worry as much about mold or rot. These markets have large corporations that help support the local economy, even though it took a hit, I believe these homes will recover. Not only that, I dont know if you are familiar with the baby boomer generation? But they are the single largest group of people all born around the same time frame, so major economic and investment shifts are felt here due to the collective aging and maturing of this group of individuals. Right now most are starting to retire and they love warmer climates. A lot of them will move down south to avoid being cold in the winter. Much of southern America could expect the same, places like Sun City in AZ where they dont have to pay taxes to help fund schools and everyone must be over 50 to live there. Las Vegas will recover because its a global hotspot for tourism, they get hit every recession but recover wonderfully.
Use online maps to find the areas of town with lower crime rates, some places in those two metro areas are really crappy.
itsandrew wrote:Hi Eric,Welcome to the forums. Great to see you have joined us on here.
Can you tell us a bit more about yourself. Where in the states are you from, what's your previous/current involvement in US property?
Andrew
I'm currently living in Spokane WA (this area was not hit by the recession, properties are not a good buy here), but I have lived all over the west side of the country in places like Seattle WA, Las Vegas NV, Phoenix AZ, Ogden UT, Boise ID.
I'm currently diversifying my portfolio and expanding into rental properties. As I said before, 4 years ago I couldnt find anything that would cashflow. 4 years ago I invested in a few businesses instead, But, now there are a lot of options to build up cashflow with REI. I'm primarily looking for duplexes and triplexes for less than $60k. My ultimate goal is to purchase 4 properties over the next 3 years that will collectively have a net cashflow of $1400.
Thanks for your replies Eric,
I can appreciate Phoenix as I used to work there in 2001-2004 in the real estate industry. I still have many friends and contacts from that time….one is involved in shortsales in Phoenix…..could put you in touch with him if you PM me.
Hi Eric,
A couple friends and I are looking at investing in the USA, we are in the process of setting up an LLC and organising bank accounts. Could we please talk privately about maybe some finer details?
I am very interested to hear about your stories and how you started your portfolio over there. Please PM when you get a chance.
Thanks
James
PM's Sent
On the topic of where to buy, I keep seeing people suggest Detroit Michigan… I would rate this metro area as having one of nearly the highest risks in the country, next to New Orleans.
Detroit – Grew as an industrial economic power house when GM and Ford were doing really well in the 1940-1980's. Then Toyota and Honda came into the picture and they have started sending local jobs to Mexico, Canada and China. The city does not have a lot going for it.
Hi Eric,
It was great to see your post.
I am heading to Phoenix in a few weeks to purchase property – it sounds like you have spent some time in Phoenix. Do you have any good property management contacts in Phoenix? Can you suggest dangerous areas to avoid and decent (not expensive) areas to invest? Ie, south of centre bad. This could save some time on the ground and really help me out.
Many thanks
Pauline
Pauline21 wrote:Hi Eric,It was great to see your post.
I am heading to Phoenix in a few weeks to purchase property – it sounds like you have spent some time in Phoenix. Do you have any good property management contacts in Phoenix? Can you suggest dangerous areas to avoid and decent (not expensive) areas to invest? Ie, south of centre bad. This could save some time on the ground and really help me out.
Many thanks
Pauline
Hi Pauline,
I sent you a PM with a recommendation for a property management company.
As far as dangerous areas in southern Phoenix, I dont have a lot of experience with that part of town. I have pretty much avoid that area because there are some dangerous areas. I mostly focus on the suburbs around Sun City and Glendale on the northwest side of the city.
I had heard of some good bargains in Az today. Client heading back to live & has picked up a steal @ way less than replacement cost & in a good area.
PS where do you board in Az?
Scott No Mates wrote:PS where do you board in Az?What do you mean? Like when I visit?
I have family that lives there, I stay with them when I visit.
I saw the flooding on the news, I hope non of you or your family got caught up in the flooding. Anyone witness it first hand? Anyone with property in the area?
burtonridr wrote:Scott No Mates wrote:PS where do you board in Az?What do you mean? Like when I visit?
I have family that lives there, I stay with them when I visit.
I think he means 'are you a snowboarder who rides a burton board'?
IP Freely wrote:burtonridr wrote:Scott No Mates wrote:PS where do you board in Az?What do you mean? Like when I visit?
I have family that lives there, I stay with them when I visit.
I think he means 'are you a snowboarder who rides a burton board'?
Oh lol I see
I never snowboarded in AZ, but there is a ski resort in Flagstaff AZ(2.5hrs north of phoenix) and I think there is another one near Tucson AZ. I use to snowboard a lot when I was younger, now not so much. I use the Alias because its what I have used for so long and I have an easy time remembering it.
Spot on ip & br. There’s more to life than property but the property is there to give us that life.
burtonridr wrote:Hi everyone, my name is Eric. I came across this forum searching for a rental property analysis spread sheet. I have been lurking for a while, but decided to join since there is so much interest from Australian investors in the US market.So any questions you have ask away and I will do my best to help you get the answers.
Hi Eric
I am currently looking at investing in the US, please PM me as i would like to discuss with you.
Thanks
HuskyHi Burton
Can you recommend US websites to search for properties. Foreclosure and auction sites, etc…
Also, what are your thoughts on Atlanta Geargia? Worthwhile investing in? Or do you recommend other areas…
Cheers
HuskyHi eric, I am interested in investing in las vegas property myself. Ive been researching condos in the area under the 50k mark and have found a few. I was wondering if you have any info on neigbourhoods/rental return etc?
Any advice and tips would be greatThanks, simon
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