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  • Avatar TravisRADMD 
    Participant
    Status: Physician
    Posts: 11
    Joined: 08/24/2019

    Looking to buy my first residential rental in the Orlando area to start forming a nice stream of cash flow(hopefully) out side my job.  Are residential home values to high right now?

    #244755 Reply
    CordMcNally CordMcNally 
    Participant
    Status: Physician
    Posts: 2805
    Joined: 01/03/2017

    Your question is about as broad as it gets. Are home values too high right now isn’t a question that can be simply answered. If you’re looking to make more money, the best way for about 99.9% of physicians to make more money is to do more doctor stuff.

    “But investing isn’t about beating others at their game. It’s about controlling yourself at your own game.”
    ― Benjamin Graham, The Intelligent Investor

    #244758 Reply
    Avatar Peds 
    Moderator
    Status: Physician
    Posts: 4405
    Joined: 01/08/2016

    Too*

    #244759 Reply
    White.Beard.Doc White.Beard.Doc 
    Participant
    Status: Physician
    Posts: 936
    Joined: 02/06/2016

    Looking to buy my first residential rental in the Orlando area to start forming a nice stream of cash flow(hopefully) out side my job.  Are residential home values to high right now?

    Click to expand…

    To answer your own question, learn how to value a real estate investment before pulling the trigger.  Learn about things like:

    positive cash flow

    cash on cash return

    cap rate

    IRR, or internal rate of return

    Once you learn about how to calculate all of these things, you can then analyze a potential real estate investment to see if it “pencils out”.  Bigger pockets is a web site about all things real estate investing.  You could start there and learn about how to analyze the particular investment in question.

    #244761 Reply
    Avatar TravisRADMD 
    Participant
    Status: Physician
    Posts: 11
    Joined: 08/24/2019

    yea, i understand those metrics. I’m just wondering that if those metrics look good (which is a relative term) than does it matter if the overall market is over valued? Does finding a good rental with a solid cap rate matter if everything is pricey? Is overall cash flow the the most important factor if you plan on keeping the place for the long run?

    #244763 Reply
    Avatar Larry Ragman 
    Participant
    Status: Other Professional
    Posts: 614
    Joined: 08/30/2018

    Lots of anecdotal wisdom about real estate investing, but I think the answer to the heart of your question is that every deal (at least for direct ownership) should be evaluated independently and should stand or fall on its own. Sure, it is easier to increase value in a rising market, but if you are buying and holding for long term steam of income, then look to buy right in each deal. Location, cash flow, financing, property condition are all more important than the real estate market in the abstract, because they all drive your ability to rent for positive cash flow. In short, buy now if you find a good deal for you. If you do your homework, feel free to ignore naysayers.

    #244766 Reply
    Liked by AZPT, Infinity
    Avatar StarTrekDoc 
    Participant
    Status: Physician
    Posts: 2040
    Joined: 01/15/2017

    The hard part about orlando rental is that it’s a combo of residential retirement and entertainment tourist industry in a place where land remains plentiful and lots of competition to service a very board sector.   Can you keep up with the rental Joneses?  That’s probably more important than overvaluation in the long run.

    #244768 Reply
    Avatar StateOfMyHead 
    Participant
    Status: Advanced Practice Provider
    Posts: 143
    Joined: 01/01/2019

    The hard part about orlando rental is that it’s a combo of residential retirement and entertainment tourist industry in a place where land remains plentiful and lots of competition to service a very board sector.   Can you keep up with the rental Joneses?  That’s probably more important than overvaluation in the long run.

    Click to expand…

    Excellent points and it sounds as if this might not be the area where the OP lives which gives me pause. Management from a distance will cost but if factored into the bottom line is acceptable. My biggest concern is monitoring the neighborhood. At this time my rentals are in a 50 mile radius of where I work and live so I’m able to keep an eye on the subtle changes and will jump ship quickly if indicated.

    I don’t purchase investment properties when the prices are what I consider inflated because although I do plan to keep them long term and am looking at the cash flow the concern is that I don’t want to be stuck with a dog. As above the ability to sell quickly without taking a bath is preferrable and not especially realistic if you buy at the high end.

     

    #244789 Reply
    Liked by AZPT, Infinity
    Avatar StarTrekDoc 
    Participant
    Status: Physician
    Posts: 2040
    Joined: 01/15/2017

    I totally missed this announcement if this was posted on this forum — just hit FB and PoFs group — ran across this with our very own as the keynote.

     

    Now you can earn CME credits! 💥
    Hi Physicians on Fire, I am so excited to announce that the first ever real estate investing conference for physicians & high-income professionals is happening!!! Yes, Jim Dahle (WCI) will be there & speaking! 🙌 #PIMDCON
    Tickets are now on sale!!! Early bird special ends soon!
    At this conference, you will:
    Learn different strategies to achieve financial freedom through real estate investing.
    Discover how others have become successful real estate investors while still practicing / working full-time.
    Learn the benefits of owning your own rental properties through active real estate investing.
    Discover different ways to invest passively in real estate without being a landlord.
    Learn expert tax and asset protection strategies tailor-made for physicians and real estate investors.
    Meet and network with other like-minded investors.
    Topic Highlights Include:
    🔸 Passive income
    🔸 Direct ownership of rental properties
    🔸 Investing passively in syndications and funds
    🔸 Crowdfunding
    🔸 Tax savings strategies
    🔸 Asset protection
    🔸 Success mindset and pathway
    Confirmed Speakers:
    • Jim Dahle, MD (The White Coat Investor)
    • Peter Kim, MD (Passive Income MD)
    • Kenji Asakura, MD & Letizia Alto, MD (Semi-Retired MD)
    • AdaPia d’Errico (Alpha Investing)
    • Trevor McGregor (Trevor McGregor Business Coaching)
    • Eric Tait, MD (Vernonville)
    • Victor Mangona, MD (39.6 Community)
    • Pranay Parikh, MD (Passive Income Docs)
    • Toby Mathis, Esq (Anderson Business & Tax Advisors)
    Date: Saturday, Oct 26, 2019
    Location: Hyatt Regency LAX, Los Angeles, CA
    Tickets on sale now. Early bird ends soon.

     

    #244834 Reply

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