Quote: (04-21-2012 05:27 AM)Pacesetter20 Wrote:
Quote: (04-21-2012 05:01 AM)TexasMade Wrote:
My question is what are the benefits and drawbacks into getting a property like this? The initial investment isn't high because of the cost of living down here. Also, if I do get the property should I pay it off next year or keep the mortgage? Appreciate the info.
Very complicated questions as there are many variables. Properties like this can be cash cows, but they can be money pits too.
How much is rent? How much are property taxes? How much is insurance? Home inspection (does it need repairs)? Liability (if someone slips and falls and hurts themselves on the property they could sue you; meaning you'd need to protect yourself with some sort of LLC). Bad tenants? (trash your place), Bad neighborhood? (crime, no one wants to live there except #1), stuff always breaking (need good cash flow to have a reserve to maintain the property).
Do the math and if you can make the numbers work, it can work, but if you are trying to be an absentee owner you will have more problems.
Appreciate the response. The rent should be between 500-800. I almost got a spot in the neighborhood for that amount. I would have to look into the home inspection. I saw a window AC so the AC probably isn't central. I would have to look into the liability issue and tenants. The neighborhood is cool. No drama or too many break-ins. Another flag is the homes age. Was built in the 50's I believe.
I don't plan on moving back to Corpus so I would be an absentee owner. So instead of having family occupy the other unit, would it be was to have property managers instead?
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