i am in university in my first year , i am doing a degree in human resources management and industrial relations. the only reason i am going to uni is because of my mum wants me to go to uni so that i can get an australian RP ( i come from the UK) , i dont really want to go to uni because i dont see the point and they is no degree that actually interest me.
well the thing is that i want to start my own business and i need to know what people think about this business that i have in mind . well the idea is that i
STEP 1: buy 2 houses and rent them out using a real estate agency hence i would have a constant cash flow coming in .
STEP2: save up the money that i would be getting from renting out the 2 houses
STEP3: buy 2 or 3 more houses and rent them out
STEP 4 ; After about 2 years from the money i would i have saved up ,try and invest /buy a small hotel
i dont really know if all this would work , or i am just fooling myself . and i am 18, is this really realistic?
2007-06-26 02:00:06 · 4 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
Assuming that you have the cash to buy two houses, it might work. If you have to borrow the money to buy them, your loan payments are likely to be so high that you won't generate much cash flow.
2007-06-26 02:14:01 · answer #1 · answered by Bostonian In MO 7 · 0⤊ 0⤋
Sure it's realistic. You won't have a lot of cashflow because you'll have mortgage payments, insurance, maintenance bills and then the fees to the property management company but don't be discouraged. People do make money doing it otherwise no one would. So, it's not so much about saving up the rent money from the other two because most of it will be put back into the homes but through time you'll gain equity in the homes (the value will go up) and then you can re-finance, take out some cash and use that to buy another rental and so forth.
Continue with the degree. This is not going to be full time for you and it takes time so you'll need the degree to secure income to live on.
Don't let other people project their fears onto you. Go for it!!!
2007-06-26 05:07:31 · answer #2 · answered by Not Laughing w/ U 3 · 0⤊ 0⤋
have you got the money to buy two houses and if you are going to get a mortgage to do that the rent payments will only probably just cover the mortgage repayments you wont get rich off two houses
2007-06-26 02:09:14 · answer #3 · answered by Anonymous · 0⤊ 0⤋
that is a wonderful plan for starting up your own real estate venture... can u say entrepreneuer? ( did i even spell it right? lol! )
2007-06-26 02:06:22 · answer #4 · answered by twhite 3 · 1⤊ 0⤋