Wife and I are in a good financial situation... Our current house is 1/2 paid off, I'm making a great living, and we have a healthy amount of solvent capital in the bank.
I've been considering real estate as my soft retirement scheme as I doubt my 401k will fund all my retirement activities or allow me to retire at say... 58-60.
We're considering buying a couple of cheap condos to rent out versus stand alone houses that are more costly per unit.
I've been finding a sweet spot between 50-60k per condo for units that are almost move in ready even if we have to selectively replace some flooring or an appliance of some sort. They rent for the 800-900 per month range in this area with about $120 per month going to the HOA. The plus side of that is that the HOA fees cover all lawn care, exterior maintenance, etc. With what we have saved, and what I would have to finance we would be coming out about $800 on the positive side each month after mortgage and HOA. The mortgages would be so small that I actually could pay one off in 18 months and then the total income would subtly increase. From there on I would think about acquiring another unit.
I'm pretty handy and can do my own plumbing, electrical, flooring, etc so I wouldn't be at the mercy of a handyman or pro for anything other than true emergencies.
I'm a bit hesitant given that these are fairly cheap condos, but that price range seems to be the sweet spot here in Charlotte. In those neighborhoods which aren't horrible but not great either, I'd probably be dealing with some renters that would be less than optimal though our finances allow us time to screen appropriately.
Yes, I'd be forming an LLC, etc.
So the question is for those of you with investment properties - especially those of you that have multiple properties ( Not just your old house you are renting), what has been your experience in the types of properties ( Condo, townhome, house) that you own with various degrees of difference in neighborhoods and renters? I'm aware of some of the pit falls... I'm focusing on condos as the cost of entry seems appealing and the ability to snowball from two properties to four and then six seems fairly predictable if my career stays constant.
Another question is how leveraged are you on your investment properties? I plan on putting half down on these condos. Do you look to max a mortgage a property and take what rent you can or do you try to maximize your debt(mortgage) to rent ratio by paying them down as much as you can from the start?
Longer term I thought we could sell the condos in 15+ years and buy single family homes that command more rent, but would let us deal with less tenants, maintenance and overall work to manage the properties. The other aspect is if we build up enough rental property that from time to time use that income to buy the right house and flip it though that is the last goal at this point. Would be fun to try once.
I've been considering real estate as my soft retirement scheme as I doubt my 401k will fund all my retirement activities or allow me to retire at say... 58-60.
We're considering buying a couple of cheap condos to rent out versus stand alone houses that are more costly per unit.
I've been finding a sweet spot between 50-60k per condo for units that are almost move in ready even if we have to selectively replace some flooring or an appliance of some sort. They rent for the 800-900 per month range in this area with about $120 per month going to the HOA. The plus side of that is that the HOA fees cover all lawn care, exterior maintenance, etc. With what we have saved, and what I would have to finance we would be coming out about $800 on the positive side each month after mortgage and HOA. The mortgages would be so small that I actually could pay one off in 18 months and then the total income would subtly increase. From there on I would think about acquiring another unit.
I'm pretty handy and can do my own plumbing, electrical, flooring, etc so I wouldn't be at the mercy of a handyman or pro for anything other than true emergencies.
I'm a bit hesitant given that these are fairly cheap condos, but that price range seems to be the sweet spot here in Charlotte. In those neighborhoods which aren't horrible but not great either, I'd probably be dealing with some renters that would be less than optimal though our finances allow us time to screen appropriately.
Yes, I'd be forming an LLC, etc.
So the question is for those of you with investment properties - especially those of you that have multiple properties ( Not just your old house you are renting), what has been your experience in the types of properties ( Condo, townhome, house) that you own with various degrees of difference in neighborhoods and renters? I'm aware of some of the pit falls... I'm focusing on condos as the cost of entry seems appealing and the ability to snowball from two properties to four and then six seems fairly predictable if my career stays constant.
Another question is how leveraged are you on your investment properties? I plan on putting half down on these condos. Do you look to max a mortgage a property and take what rent you can or do you try to maximize your debt(mortgage) to rent ratio by paying them down as much as you can from the start?
Longer term I thought we could sell the condos in 15+ years and buy single family homes that command more rent, but would let us deal with less tenants, maintenance and overall work to manage the properties. The other aspect is if we build up enough rental property that from time to time use that income to buy the right house and flip it though that is the last goal at this point. Would be fun to try once.
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