I know alot about the mortgage business so please no advice on mortgage, im looking to see if i could purchase a house in Houston and rent it out to potential renters. I know that rent is cheap in that area so im looking for a purchase price of about 75 to 90 grand. My question is if i do go ahead and do that could i just let property management take care of it or am i missing something that im not aware of.
2007-03-03 08:20:50 · 3 answers · asked by Kevin C 3 in Business & Finance ➔ Investing
Don't recommend it in today's business climate. My brother-in-law owns lots of rental properties and he's loosing because his tenants are loosing jobs. Then, he still has to come up with money for property taxes. I still think the best way to invest in real estate is a Real Estate Investment Trust. Magazines have said that R.E.I.T.'s are increasing lately even though individual properties aren't doing as well. Mutual funds will allow you to invest that $75,000 more safely in a R.E.I.T. Mutual fund. If you do get involved with rental properties, property management only makes sense when you have about 10 properties or more. Good luck.
2007-03-03 09:11:38 · answer #1 · answered by zyryx_master 1 · 0⤊ 0⤋
Rental property is like anything else you own. You have to check on it regularly to insure it is being maintained and you're not being cheated.
Property managers are a good option because they're the middleman on the maintenance issues and you don't get those 11PM calls about the drain being plugged, but if you don't do regular inspections of the property, and the expenses, they'll take you to the cleaners.
Since you're in the business you should have good contacts for managers, but don't assume they're looking out for your best interests, stay involved after the purchase.
Good luck. Sounds like you're going to be the next Trump!!
2007-03-03 16:28:07 · answer #2 · answered by Sarge1572 5 · 0⤊ 0⤋
hey,
I am a Realtor, great idea, but you might consider another part of the world. I say this because Texas has extremely high property tax. Of course you know thes plays into the total mortgae payment, per month. I have a property in montgomery Al, and I make $175.00 a month on it. I have a property manager that I pay 10 percent of the total rent per month. It is lucrative, in the right area.
landstonegsl@yahoo.com for more info
2007-03-03 18:03:25 · answer #3 · answered by JoshuaCaleb 1 · 0⤊ 0⤋