Posted by Sonja on September 26, 2003 at 08:06:42:
Thanks for answering Tom. I am new to rentals so as to experience I don’t have much. Three years ago I bought 2 condos and did fix and flips on them. I’ve read other boards and researched this dream of rental ownership for two years. The property I bought in July of this year has been trouble free so far and my cash flow is just under $200 a month. I bought it for $71,000 and it appraised at $82,000. I want to make $200/mo cash flow on a property or I don’t look at it. This may not be the way experienced investors figure but so far it is working on the one rental I own. I was looking to borrow from what I call a conventional lender because they can do a 30 year loan. This way if money gets tight I can still make the payments but I can also pay it off early. Here in CO I am finding that I can pull the equity out or refi after the loan has been seasoned for 1 year. My goal is to purchase 10 units/properties. One more this year and whatever I can do next year. I love looking at properties and it is exciting having this one so far so maybe if all goes well I will continue after the 10. The area that I am buying in is an area that will grow much in the next few years. Already there is growth starting with some of the new big box stores going in. The prices are right right now but are increasing. My biggest obstacle will be the money so if you have any suggestions on other ways to overcome that I am all ears. I plan on joining a local rei group to gain more knowledge. As you can see I am but a baby to this whole investment thing but I love trying to figure out what I can do to accomplish my goals. One way or the other I will do it. Thanks for any input.