First Choice Real Estate, LLC

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First Choice Real Estate, LLC
Sales & Marketing, Property Management, HOA/Community Divisions

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2170 Ashley Phosphate Rd, Ste 403
North Charleston SC 29406

Office: (843) 572-1502
Mobile: (843) 225-1502
Fax: (866) 381-6723

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Wanting to know some other ways to invest your money and of course you are wanting to know what rate of return will you get for your money. Here are a few questions that I have received and answered. If you have a question send me an email at subject: RE QUESTION

What kind of rental property do you suggest? I would recommend single family dwelling. They are going to range from $60,000 -80,000 for properties built in late 70's into the 90's and usually $100,000-150,000 for properties built in last 10 years.  I recommend mostly houses built within last 8-10 years. This should minimize any major repairs and 5-7 years old is even better. Not having to sink money into a roof, heating and air condition system, or water heater. These are your most expensive repairs. Keeping a home warranty on the property can also be a wise decision. I would then recommend you keep the house for 2-5 years depending on the market and then sell and exchange the profit into 2 new properties within same age as recommended. This will now give you more tax breaks and the depreciation from your first property will roll over to the new properties. By selling in this time frame you should be avoiding any major repairs, which are normally needed around 12-15 year old properties.

How much money will I need to invest? Well, that is up to what amount that you have. Investors like to put down the least possibly, but this only creates more mortgage debt and usually a negative each month so then you would have to pay the difference. I recommend the old rule of thumb, 20% down and then you should be creating positive income each month and much easier to get financing.

Can I manage my own properties? Yes, many investors do. If you need help you are always welcome to call me. I have some investors that call me before their tenants move out to help them find a new tenant for replacement. They do pay me a one time leasing fee and they take care of the property management. If decide you don't want to manage the property anymore then you could just call me to handle the management for you.

How safe is my investment with rental properties. I have never in 18 years had an investor lose out when they have purchased properties through me. Using an agent to assist you with the purchase of an investment property who has no knowledge in managing rental properties is not recommended by me. Why, because many agents don't have the knowledge to give you data to back up whether the property is a good investment as rental property. They will just tell you the rental market is great and sell you the property and they are gone and you are now sitting on a property 3 months later and still not rented. Make the agent put it in writing. If he says you can get $1000 for it easy then tell them to put that in writing. If they tell you it will rent right out, then tell them to put it in writing. Not rented and still vacate for 3-4 months after your purchase then you should be going back to your agent for some rent money. A good knowledgeable agent with management experience will give you data on paper with rent ranges and time on market to get rented. Notice I said rent ranges, this is because there will be times when you will receive a higher amount and times for a lower amount of rent. Remember market, demand, and competition.

I want to invest and get a return, but I also want to be able to get my money out if needed for an emergency, is there anything I can do? Yes, you could just invest with a bank and get a 90 day CD. You can also loan your money at a higher rate then what the CD would pay. Normally twice the amount. You can invest with a private investor, but you do need to be very careful. You would have paper work drawn up with the details and have a clause for receiving you money back within a time frame if you decided to withdrawn it. Check with your attorney on this and have them review it. I borrow money from individuals and pay up to 10% interest on their money and they can withdrawn it if needed for emergency within 25-30 days. I have a written promissory note with them and I also provide them with a back ground report, a credit report, and my experience showing them that all is in good standings.

What would you say is the minimum cash I need if I wanted to purchase an investment rental property? I would say minimum $10,000 and must have good credit. I could possibly find you a VA foreclosure. VA will finance and hold the note and figure 10-15% needed between down payment and repair money.

Do I have to be a veteran to buy with VA? No, you do not have to be a veteran.


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