Post # 1
Have any of you bought investment property either to fix up and sell or rental property?
I have an attorney, financial analyst, realator, and constuction guys in my back pocket, and I have some extra cash. So I was tossing around the idea of using real estate as an investment.
Is there anyone who has done this and has a story to share?
Post # 3
I have two rental properties, and I am constantly on the look out for a good flip. One rental property was my old house that I decided to rent instead of sell when my Darling Husband and i bought our house.
The second was a foreclosure in my town that was TRASHED when I bought it but it was half the price of the house had bought to live in 2 years earlier. I was able to negotiate with the seller being able to do the work while the house was in escrow, so the day I closed, I already had the house rented.
I think the main things you need is a firm budget and a realistic timeline. It is also very helpful to have construction people available so you can get quotes the same time as your inspection (or before) in order to decide whether to move forward with a purchase.
If you are looking to rent, make sure you are in an area with a steady stream of young professionals or families (the mostly likely renters). Also, do lots of research on what rentals are already available in your area so you know how much rent you will be able to charge. You need to be able to cover all of your expenses and make a little more each month to cover any unforeseen repairs.
Post # 4
Thanks for your response and the tips!
Post # 5
My husband and I have thought extensively about this. Things keep coming up and this gets put on the back burner. 😉
Besides looking at foreclosures we’ve also looked at HUD homes.
I think the big thing for us was the mentality that probably for the first couple years we really will not see much of a profit. Between buying the house and fixing it up, etc.
If you are thinking rental properties look up landlord/renter rights in your area so that you are informed.
Make sure you incorporate yourself so that if anything were to happen you do not lose everything.
I don’t know about your area but in our city there is a HUGE transient student population. Which is a huge niches as well for renters. We plan to target young couples/students and giving our properties extra amenities that other rental properties might not typically have.
Post # 6
@Gerbera- I sort of want to do it now because I don’t have the excuses and I feel like as soon as we have a family we will have too many excuses!