| Looking to get into rental properties |
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Fritzymom
First Time Poster
Cash: $ 0.25
Posts: 1
Joined: 09 Sep 2011
Location: California
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| Looking to get into rental properties |
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We are looking at getting into rental properties, single family homes. We have considered it in the past and never took the plunge. Now seems to be a good time with low interest rates and low housing prices.
First house we are looking at could rent for appx. $500 more per month than the payment, including taxes and insurance. We are looking at 30 year/5% rate.
It would take 17 months to recoup our out of pocket down payment and closing costs (if rented the entire time).
Does this sound reasonable and would this be enough profit for you experienced investors and landlords?
We are starting off small - looking to start with one house and then maybe another within the next 6 months to a year. We have family who have 3 rental homes in this area and are using them as our 'experts' and asking them lots of questions, but they pay cash for their houses so feel they are getting a better return on their money from where they had it.
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Fri Sep 09, 2011 3:38 am |
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IanBlack
First Time Poster
Cash: $ 0.20
Posts: 1
Joined: 14 Oct 2012
Location: 1536 Shetland Pony Ct,Parker,CO 80138
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Investing in rental properties is good option for investment. The real estate market is always on for such interested persons.
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Sun Oct 14, 2012 8:58 am |
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savemoneyinvestsmart
New Member
Cash: $ 1.40
Posts: 6
Joined: 13 Oct 2012
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| Re: Looking to get into rental properties |
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If you can make $500 more than the payment you are going to have then yes I would do it. I would try to get a lower interest rate and also see how much total credit the bank will give you so if you come along another good deal you can jump on it and already be pre approved. I would not bank on having it rented every month unless you already have some good renters lined up. Sometimes it can be a challenge finding someone to stay for long periods of time and actually pay the rent they owe.
quote:
Originally posted by Fritzymom
We are looking at getting into rental properties, single family homes. We have considered it in the past and never took the plunge. Now seems to be a good time with low interest rates and low housing prices.
First house we are looking at could rent for appx. $500 more per month than the payment, including taxes and insurance. We are looking at 30 year/5% rate.
It would take 17 months to recoup our out of pocket down payment and closing costs (if rented the entire time).
Does this sound reasonable and would this be enough profit for you experienced investors and landlords?
We are starting off small - looking to start with one house and then maybe another within the next 6 months to a year. We have family who have 3 rental homes in this area and are using them as our 'experts' and asking them lots of questions, but they pay cash for their houses so feel they are getting a better return on their money from where they had it.
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Mon Oct 15, 2012 3:00 am |
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trumankent
Member
Cash: $ 2.40
Posts: 12
Joined: 19 Oct 2012
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Rental properties are becoming one of the rising options for people who cannot either afford a home amidst fluctuating home prices in most real estate markets, or those who choose to wait until the ripe time comes for a healthier real estate industry condition.
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Fri Oct 19, 2012 4:25 am |
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Henryearhart
Member
Cash: $ 3.80
Posts: 14
Joined: 03 Nov 2012
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The rental properties are good way to invest and the real estate is the only way for the property market where the investors are trying to find ways to find out people who are really interested in putting up money.
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Sat Nov 03, 2012 4:17 am |
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rockymountain
Contributing Member
Cash: $ 6.40
Posts: 25
Joined: 11 Sep 2012
Location: USA
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| Re: Looking to get into rental properties |
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Investing in rental properties is good option for investment. The real estate market gives profit always on for such interested persons. But sometimes it depends upon the market ups and downs
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Mon Dec 24, 2012 6:54 am |
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oldguy
Senior Member
Cash: $ 751.85
Posts: 3656
Joined: 21 May 2006
Location: arizona
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quote:
but they pay cash for their houses so feel they are getting a better return on their money from where they had it.
I've been a landlord for over 35 years, I have found that the opposite is true - ie, you get a better return if you use mortgages and keep your houses leveraged.
Eg, if you have $200,000 to invest, you could pay cash for one house and get one rent check, maybe $12,000/year? But if you used your $200,000 to make down payments on 4 - $200k houses, you would get 4 rent checks, ie almost $50,000 per year. And then there is the capital appreciation - if houses appreciate about 60% over the next decade, your single $200k house would increae by $120,000. But if you had 4 of them, they would go up in value by $480,000. Fot the same $200,000 investment.
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Mon Dec 24, 2012 1:47 pm |
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inspectrhome
New Member
Cash: $ 0.60
Posts: 3
Joined: 26 Dec 2012
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I am looking for rental property that includes single family homes, have considered it in the past and never took the plunge. Now seems to be a good time with low interest rates and low housing prices.
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Wed Dec 26, 2012 9:38 am |
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