Chapter 15 Location

Chapter 15 Location

Location is very important. I am going to own 10 houses: where should they be? I have decided to start this business in Albany. This will put me this is city for another 5 years. I have already found the first house that I want to buy.

I have divided Albany up into 2 sections. Cheap housing and the high profit housing. I want to have locations in both downtown and uptown areas of Albany. My models predict more success in the high profit housing investments, so this is where I need to spend the most energy.

However, the cheap housing is going to the source of my early profits, so this is where I am going to start my business. These properties will benefit the most from house reinventions. Most of my early labor is going to be invested in refinishing. This is what is going to keep me in business in the beginning. Once I start making enough rent profit, I will invest more into the high profit housing.

I have to have both within the next three years.

This section is also going to discuss individual houses. I have been doing so much research on houses lately, that every time I am walking around the city, I find myself looking at houses. I know what to look at when I am looking at the exterior of a house. I am looking at the paint job, the porch, the windows and trim, the roof, the yard, the lot size, the neighboring houses, the surrounding area and the location in the city. I know what to look for now when I am looking at houses for sale. I have already looked at a few houses now. The first house I want to buy, I want it to be a fix it upper. I want a house that needs a new paint job. These are the kinds of things that I am looking for. I also want at least four apartments per building.

I have found the first house that I want to buy. I want to buy 215 Quail Street, Albany NY, 12203. See attached sheet. This house fits all of my models from maximum profits.

Mortgage details
House value	$179,000
Down payment	$20,000
Length	30 years
Interest Rate	6.5%
Monthly payments	$1,043
Total Interest	$210,448
Total Payment	$375,448

This house is a perfect, some renovations will be needed, however these will increase house value. This house can generate $2,500 a month. $2,500 - $1,043 = $1,447 in rent profit a month!