Research ... July 09
2 days ago
1. Research, read
2. Using research, compute how much cash is required
3. Set up savings plan
4. Set up timeline
5. DO IT!
How to buy an investment property
It made me
A little anxious. 
"It's hard being landlord AND have a real estate market take a turn for the worse."
How I did it: In 2005 my husband and I purchased a townhome, with an interest-only 5/6 ARM. Well, we should have known better to take that sort of loan, but we were in it, too, to make money, thinking it would be perfect to sell at the end of the the ARM and make a killing. Um...you all know how to market went. And even though we are renting to my mom and sis, which has worked out okay, they may be moving out soon, which means we have to find new renters. Not sure about that one....renting to strangers...In this market, it would be tough to sell, and it would be at a loss. Oh, and don't forget the fact that you're a LANDLORD. It's very annoying when my mom and sis call to say the a/c isn't working, and I'm the one responsible for getting it fixed. A $1,000 isn't cheap.......Definitely a way to build wealth, but know what you're getting into before you buy.
Lessons & tips:
- Be clear about the type of mortage you're getting. I would recommend a 30-yr fixed. If you can't afford the payments on a 30-yr fixed, it means you can't afford the mortgage. Find something cheaper.
- Have a cash reserve for things like broken a/c units, exterminators (for mice!).
- If you're renting to family, be sure to get a lease and collect a deposit. Many rules change when you're leasing to family.
Resources: Be sure to use a real estate agent when you purchase, so that you have a professionals opinion to run things by.
People doing this are also doing these things:
Entries
cubedrube is a money managing traveling extrovert.. well 2/3
Untitled
1 month ago
30.5.09
Signed contract! Waiting for exchange of contracts and then loan approval and voila!
Obsession in full tilt
1 month ago
Went back to visit the duplex again because mother in law was in town and wanted to show it to her. THEN discovered all the amazing videos on thisoldhouse.com showing you how to do all kinds of repairs, and binged for the rest of the weekend. Emotionally we have fully moved in and renovated the place. In reality we are still in a holding pattern… alas!
Also need it to be a place to live
2 months ago
Duplex is perfect. Need to move because we are running out of space. I’m thinking we might be even more in need of space toward the end of the year…
Got pre-qualified!
4 months ago
Yay! Now we can get more serious abt things… My fantasies abt this one place are in full swing…
Okay
4 months ago
This is not as impossible as it sounds. I think it is actually on the horizon – like within 6 months or so. That is the goal. Have been talking to the realtor and things are looking up.
Well
4 months ago
looks like getting a loan is going to be tricky. Might have to wait a few months till my paystubs tell a better story before applying.
I think we've found a great agent
5 months ago
knows abt the area, knows abt this kind of property… going to talk with her tomorrow.
