I am 23 and living at home working full time and started a small business over a year ago. I am an entrepreneur and I am looking to take my life to the next step by investing in Real Estate. I feel like renting wont ever get me anywhere so I want to avoid it if I can. I live in NY about 2 hours from NYC. Houses up here are 200k +, o r300k for something nice. I have looked into area's down south like SC where i have visited several times... Myrtle beach, Charleston...etc Seems more doable, but I am still single and only make about 40k a year at my job and maybe another 10k with my business in it's first year. I have about 5k in saving's. Will I even be able to make the mortgage payments? Seems kinda close to me taking in car insurance and gas, and groceries. I have Mentioned to my father about an investment together, where we split everything in half and also split the profits when we sell. Where should I start and how much should I save first?
2007-03-04 07:04:16 · 7 answers · asked by Jeremy F 1 in Business & Finance ➔ Renting & Real Estate
You shouldn't be expecting cheap houses down here in Charleston. Most of my family lives south of broad and you won't find a house down there for under $1 million and it might be difficult to even find one under $2 million. Even houses in the surrounding areas like Mt. Pleasant, James Island, West of the Ashley, Isle of Palms, etc. will run you well over $250k for something that is just nice and not really luxurious. I would suggest that you maybe look further out from Charleston. Maybe around Summerville, SC. It's still pretty expensive up there, but maybe more around the price you are looking for. Myrtle Beach area is also pricey. My family owned pretty much all of Myrtle Beach at one time (before the Civil War) and we still have a large amount of land up there on the Waccamaw. I know that houses now are pretty expensive in that area because of the influx of northerners moving in. All in all, I think you might want to save a little more to be able to buy a decent house. I'm not sure what kind of work you are doing, but are you looking to move the whole business down here?
2007-03-07 06:01:41 · answer #1 · answered by huguenot85 2 · 0⤊ 0⤋
You might consider buying a duplex or other property with rental potential. The rent income would help with a mortgage payment. Or, if your house is large enough, you might get a roommate to share expenses. Another option is a run down property with potential, especially if you are at all handy. Any spare time you have could be used to increase equity in your home. Start small, fix it up, sell it, and buy something a little better. You could do this several times until you end up where you want to be in the house you desire.
2007-03-04 07:10:47 · answer #2 · answered by silco4 2 · 0⤊ 1⤋
Hooray and all, but why invest during a peak, NY and the east cost as a whole is bubbling, wait until a crash, then buy and ride the trend upwards, not down.
Otherwise buy in cities like Phoenix or Houston where homes are still on a long term rise.
2007-03-04 07:20:43 · answer #3 · answered by Mark P. 5 · 0⤊ 0⤋
I would concentrate on positive cash flow properties only.If it is not a positive cash flow, move on to the next one.Economically real estate is in a recessionary condition of lower prices for now.Know your limits as a lender may make you think that you can afford any thing just to get the loan.Trust your Fathers thoughts as he has more experiance on this earth.Be extreamly causious about tax lean sales.Always use an experienced Realtor for purchasing the property.
2007-03-04 07:21:44 · answer #4 · answered by (A) 7 · 0⤊ 0⤋
Bravo, you're on your way to home ownership. You've got your head in the right place, too, with a job and a business and savings, too. If I were you, I'd get more diligent in your monthly savings routine before looking at houses again in about a year.
You'll want to have about 50k a year in salary for a 200k house.
Think about what amount you want to put down, closing costs, moving costs ( ny to sc ), and furniture in your first home. That's the amount that you want to shoot for in your savings. You'll be able to do this purchase on your own probably next year if you really buckle down and save everything you can.
2007-03-04 07:15:13 · answer #5 · answered by annazzz1966 6 · 0⤊ 1⤋
I would advise you to read as much as you can about Real Estate Investing. There are a lot of free resources on the internet.
http://www.ForumForMe.com/
Your Creative Real Estate Investing forum.
2007-03-04 07:14:00 · answer #6 · answered by Anonymous · 0⤊ 0⤋
read tips on real estate, investing and more to help you better on this site
2007-03-04 07:17:56 · answer #7 · answered by Anonymous · 0⤊ 0⤋