I currently own my home outright, it's valued at 250K, I currently earn 3K per month, and although my property value is increasing at 5% per year, I would like to know the best way or opportunity to derive some form of immediate income? Should I finance and rent another property? My neighbor is selling their home and I am considering purchasing this for rental income or what ideas does anyone have for me?
2006-07-10 04:50:26 · 5 answers · asked by Anonymous in Business & Finance ➔ Investing
A precise answer to this question of yours is hard to give
Long before you take it seriously
Perhaps you'll even forget what you asked
Easy way to find it out right away is:
RE-THINKING of the issue...
Have a nice day!
2006-07-10 04:54:01 · answer #1 · answered by Roland 6 · 0⤊ 0⤋
First of all, you must remember that there is no such thing as "the best investment opportunity". There are only opportunities that are more or less appropriate for you in your particular situation.
Let's say you borrowed against your house and used the proceeds to buy your neighbor's house. Now there are two things you need to know before you go ahead with this, (1) how much would a monthly payment on your mortgage be?, and (2) how much could you hope to rent the house for? Monthly rent should be COMFORTABLY above mortgage payment.
If you are over 62 years old, you may consider getting a reverse mortgage on your house. You would receive a monthly payment from a bank in exchange for a deed on your house, which the bank will receive after you die, whenever that might happen.
AARP has some information on reverse mortgages:
http://www.aarp.org/money/revmort/
2006-07-10 12:49:26 · answer #2 · answered by NC 7 · 0⤊ 0⤋
Since the house is paid for and you make $3,000. why borrow on your house? Pay a little down (20%) is best, no PMI insurance, and no qualifying at 20% is usually needed. Keep your house free and clear. You'd have to consider the payment you are making vs the income you get. However, appreciation of the new property and depreciation could be a good factor. Short term or long term ownership can affect your bottom line too.
If you do borrow on your house get a line of credit, not a new mortgage. Closing cost are usually different.
2006-07-17 10:45:21 · answer #3 · answered by cancan 1 · 0⤊ 0⤋
No one can give you a complete answer to your question unless you post all of your financial information on this message board.
Go speak with a licensed financial planner in your are for some guidance.
2006-07-10 13:36:46 · answer #4 · answered by insuranceguytx 5 · 0⤊ 0⤋
schfifty five
2006-07-10 11:54:26 · answer #5 · answered by }pixie{ 4 · 0⤊ 0⤋