| Buy rental houses in an ice cold real estate market? |
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ArntorFTL
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| Buy rental houses in an ice cold real estate market? |
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This is just preliminary thought on my part - just thinking of the big picture and not really specifics at this point.
I've been thinking about trying to get into rental property for some time now. I live in an ice cold real estate market. Houses in my area are sitting for sale for, in many cases, 12-18 months, if not more. That said, is now a good time to look in to buying my first rental house "cheap"? Are there any glaring issues that a first time rental buyer like myself should know of? Any info that would help get me started would be most appreciated 
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Sun Dec 17, 2006 2:38 am |
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oldguy
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Location: arizona
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I think you are right - in the 35 years that I have been a landlord, I've learned not to time the market, just buy when you are ready. But it is my guess that, 3 years from now, you willl be happy with whatever you buy in the next 12 to 18 months.
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Sun Dec 17, 2006 8:31 pm |
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MidshoreMoney.com
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Consider that real estate is usually either a Buyer's or a Seller's market. What you're describing is a Buyer's market, your market. Because people are having trouble selling their properties, these sellers become highly motivated to sell. They want out! They're moving, they got a divorce, the property is about to be foreclosed, etc. That means bargain time!
The important thing right now is that you could get properties for 20% - 30% below market value. So, if the property is worth, say, $100,000 and you could get it for $75,000, you should be making money no matter what happens. You could either wait for the market to start climbing again (in which case you could buy the property at market value and wait for it to acquire the 20% - 30% you need to make a profit) and sell or you can hang on to it and rent it out. There are obviously other options.
Pat
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Sun Feb 11, 2007 4:46 pm |
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