Posted by E.Eka on October 10, 2003 at 15:38:35:
This is my reservations with your idea. You currently live in Michigan, but why would you buy an apartment in Florida? How will you manage the property? How would you fix the toilet if it breaks on the tenant? What about repairs? Collecting rent? Dealing with your tenant?
Also when it comes to conventional or FHA financing, you’ll have to be the owner occupant. Which means you’ll have to live in the house and yu can’t turn it into investment property.
Those things are pretty straight forward but why would you pay rent in Michigan, while someone else pays you rent in Florida? How will you deal with Vacancies? You plan on flying down everytime there’s a problem?
Most importantly, would you have a short term lease? Since you said that you’d like to move in 3 to 6 months. What would be the point in getting a tenant?
It’s not too conservative an approach…it’s an unwise approach.
You could also consider a multi unit or duplex. Your tenants would pay your mortgage, taxes and insurance, while you save money, and pay off any bills. As you generate cash, you can then begin investing in other properties or foreclosures etc.