Buy and Hold??? - Posted by Gary O
Posted by Gary O on March 04, 2002 at 10:14:11:
I posted a message Friday about my current goal. I got some good responses and one that was not so good. However, I don’t think I explained my topic very well either. This post had two parts 1) my goal and what do you think and 2) Condo units as an investment.
First, my goal is to aquire enough rental property to where the income from the rentals out does my current JOB’s pay. I would like to do this within 3-5 years, however, like goals should be, this is flexible. The reason why I think rentals is a good idea is that it appears to be secure way to go. Correct me if I’m wrong, but I would think that in flipping you could have a good month and a bad month, but if you owned 40 units collecting rent then you have a pretty good idea of what you could expect month to month. I realize that you may have renters that don’t pay, but if you did your homework you would have calculated those situations as an expense and held money out for that. My goal is to not JUST own rentals, but to focus on that first so have that security of the monthly income (so I can feed my 3 kids) and THEN start rehabbing and flipping (icing on the cake if you will). With all that said, to get started, I have $140,000 in the bank (clear), and I have $150,000 easy in equity in my own home. What is your opinion on this approach. Remember I’m thinking long-term, NOT get rich quick. I’m looking for someone (renters) to pay for my net worth and monthly income over time. Rents usually always go up while your mortgage is getting paid down.
The second part is about the idea of investing in condos. Has anyone had good or bad experiences with them? No, I do not want to focus only on condos, I just ran across a few that seam to be good investments. They are in large complexes and have excellent HOA’s. I worked the numbers and they will cash flow just as well as some SFH’s. The only difference is, is that as an owner I’m only responsible for what’s inside the walls. I wouldn’t have to worry about roofs, plumbing, landscaping, ect. Just keeping the place rented. What are your thoughts on condos?
I know this is a long post but I hope to get a lot of different opinions on these topics, and yes I will check out the book by David Schumacher.
Thanks for your time CRE Online community!!!