My husband and I are in our early twenties, and are interested in buying homes, to use as rent houses and hopefully make a second income. We are also interested in buying them to fix up and resale. Does anyone know how to get started on that. We don't have any money to put down on it. We are also wanting to buy houses for fairly cheap. There are lots of homes around here for sale, however they are pretty expensive, and the mortgage would be high. We also wouldn't make any kind of profit on a resale either. I need some advise and some help. I saw a infomercial some time ago about buying homes for pennies on the dollar. Does that actually work? Can you really buy a large home for a few hundred dollars, and then resale it for 50-100 thousand?? I don't believe any of that.
Thanks a bunch for any advice I receive.
2007-10-21 14:47:38 · 5 answers · asked by Mommy of 2 5 in Business & Finance ➔ Renting & Real Estate
My husband and I are interested in the same thing. We bought a small 638 sq ft home for $25,000. (Only had to come up with $1000 for home owners insurance and escrow account). Once we pay it off (in about 7 years) we can buy another home and rent the one out that we are in now. Once we pay off the second home, we can rent it out and buy another one. Basically that's the only way that I know of as to how it can be done. Hope this helps!
2007-10-21 15:06:45 · answer #1 · answered by WTF 4 · 1⤊ 0⤋
There are two ways to go:
1. "Flipping houses" where you buy cheap, fix it up and sell it.
2. Investment properties which you manage and rent for income
People have made money off of flipping houses, but it's risky. Given that the housing market peaked and is now in a downturn, this is an AWFUL time to flip houses. You can end up carrying multiple mortgages and losing money based on forces you cannot control in the economy.
If you're willing to put in a lot of work and time, as well investigate the legal issues of landlording, then investment properties can be very smart long-term. It's a pretty serious commitment, but the richest people I know (an aunt and a couple of family friends) all made it this way.
Just get some books and read up on it to start - don't believe the get-rich-quick schemes on TV. Good luck!!
2007-10-21 15:09:17 · answer #2 · answered by Opa O 2 · 1⤊ 0⤋
You can buy some cheap , but No one will turn around and pay you any big bucks these days on them .
They are in the rust belt ( Detroit and the like ) .
Why would they pay you lots more when they could pick it up cheap themselves .
Those infomercials are to make the host guy rich .
People short on basic math skills , like the hoopla of getting rich , give him $$$$$$ and he laughs all the way to the bank .
To buy homes for profit you need at least $100K cash and that is for the marginal , risky neighborhoods .
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2007-10-21 14:59:41 · answer #3 · answered by kate 7 · 0⤊ 0⤋
Be careful. A lot of the current forclosures are houses bought on speculation that people thought they could "flip" for a quick profit and they are now losing their butts. Those infomercials are scams; they just want to sell worthless "programs" to you.
2007-10-21 15:03:09 · answer #4 · answered by Anonymous · 1⤊ 0⤋
Now is not the time to do this as credit has tightened and loans are not as easy to get. You need to join your local real estate investors association and get education before venturing into this. It is an intricate business and could be lucrative but you need education. Check into your local area and google to see if there is an investor's association, i.e. if you live in Illinois you would google: "Illinois Real Estate Investors Association; or in Michigan "Michigan Real Estate Investors Association; in Florida: "Florida Real Estate Investors Association" and so on...
2007-10-21 15:00:28 · answer #5 · answered by Carly Jacks 6 · 1⤊ 0⤋