Property Investment?

Question

Property Investment?
I am buying this condo for $125,000 and it is tenant occupied. Then tenant is paying $1150.00 rent and common charges is $435. Do you think is a good idea?

Answer 1

(1) This is not a good time to invest in Real Estate. There are too many morons (buyers and lenders) out there. People buy a piece of property they can't afford (payments over 1/3 of their income), at terms that are insane ("creative financing" means you only part of the interest and none on the principle leaving you with a balloon payment of more than the property could possibly be worth in your wildest imagination). As a result people are just walking away from properties... properties are going into foreclosure.

I spoke with an property investment brokerage recently. I asked specifically about the housing market. "Only a temporary slump" was what I was told. People used to buy property to live in... to raise families in. Today they buy them because they think in a few years they'll be able to find somebody dumber than they are to pay more for the property than it's worth than they did.

That said, there is money to be made in property investment. Link up with a good property investment company. I knew of an airline pilot who had a goal of being a millionaire in 5 years. He linked up with such a company and was a millionaire in 2 years.... but he had to retire from flying. One of the requirements of the company was that he be ready to sign whenever they found the next step in achieving his goals. Look for a Real Estate company meeting the following criteria"
(a) There is a Real Estate attorney on staff. The company to which I referred above had a Real Estate attorney on staff (actually, one of the principals) who also taught at a prestigious law school.
(b) There is a CPA on staff. Another of the principals of the company to which I referred was a CPA.
(c) There is a property management guru on staff. Another of the principals had 20 years experience in property investment.
(d) They work only with investors and investment property. If they list "homes," you're dealing with people who don't know investment.

(2) Rentals can be problematic... for reasons you can probably figure out on your own. For example... you have to make payments even if the place is vacant, you have to pay to keep the place up as if you live there even if you don't...

Bottom line, if you're a seasoned Real Estate investor (presumption: you aren't, or you wouldn't be asking this question) with a lot of extra money to burn (presumption: you don't, or you wouldn't be worrying about payments), I'd say, go for it.

The condo is going to cost you probably over $2000 a month. If your net income (at present--excluding projected rent) is $6000... what do you think?

A word to the wise about investment... Never invest unless it's a sure thing, and never invest what you don't want (or can't afford) to lose. As you become knowledgeable and rich, you can afford to take more risk.

Answer 2

Everything You Need To Know About Tenant Occupied Properties
http://investments-in-real-estate.blogspot.com/2007/11/everything-you-need-to-know-about.html

Answer 3

maximum appropriate interior the long-term is (c) in case you're able to have adequate funds it - that way you get the earnings of the upward push in sources expenses over the years for 2 residences. I even have study books from people who've made thousands and thousands from buying residences and that they recommend paying off the 1st mortgage as quickly as possible, and utilising in spite of fairness you have interior the 1st domicile as collateral on the 2d domicile - and to in no way sell until eventually you somewhat want the money! there are various tax deductions you additionally could make for maintenance/maintenance on a condominium sources - techniques you, you're able to declare the greater earnings!

Answer 4

It depends on how much your mortgage payment is each month if you aren't paying cash for the condo.

Answer 5

no