Quote: (04-24-2012 03:35 AM)Cr33pin Wrote:
reading the description it has 4 units, i own property an rent it out for a living. multi unit houses are where its at. you only pay taxes, insurance, repairs, for one house, yet get rent equal to 4 houses... its alot cheaper to replace a roof on one house then it would if you had four houses
at your age this is a very wise investment, you will be making enuff money to double up on your principle payments an pay it off in less then half the time you finance it for. and as soon as it paid for its money in your pocket every month for the rest of your life or as long as you keep the property an keep it rented.
and giving your bro a apartment in it just for looking after 3 others is not the smartest move money wise. the property managers around where i am from charge 10% of your total monthly rent income, so if you had all 4 units rented for 500 a month they would charge $200 bucks to manage your property.. id still charge your bro atleast 200 or more dollars a month for rent....
buy it now, have your renters pay for it for you. and one day if you decide you dont want it anymore you can sell it for way more then you paid for it pus you would have been making money off it for years......... WINNING
Buy it, an buy other properties every chance you get, realestate makes alot of millionaires.. it is always better to buy the properties somewhere you are living where you dont have to pay someone to watch over them an you can keep a better eye on them.
my .02
You bring up good points but with investment RE your still open to a lot of risks. What you stated works out great if your in this for the long term. The best part about this is that you get a fluid source of cash coming through but you sitll ahve to factor in costs that will most likley rise. Taxes will go up, Interest rates will go up, fees will cost more with no guarantee this property will be worth more in 3-5 years than it is today. Nobody really knows if American markets have bottom'd out, if you believe its wise to take a %'age hit for a few years then that's cool, but it will also mean you will have to wait years longer to sit on this thing to build up sizable equity. A REIT you can dump in a few hours and you still got all the benefits of fluid cash coming through. Depending on where you live also you can swish your fund around to avoid taxes, not so with property.
I see time and time again when cats jump into the physical rental game and only come out with a meager 5% gain in the end when all is finalized with all costs in. I know in Canada you can 'hide' your dividends and get a tax break on them, would they count your rental cash flow as income in the States or Texas?
With a REIT I don't have to worry about shit as long as its a well performing fund people still gonna pay there rents. You can own Apartment blocks and shopping malls and sit on your ass. If you are crafty with your hands I would say go into a physical holding since you can cut down on maintenance and repairs costs by doing shit yourself.
Look at all options. Look at tax rules also to see how much of your cash you can keep in your pockets. Also look at rent trends in the area and figure out if its the most viable spot to cash in on some high rents. Is it near a University or something like that?