First Time Buyer (conservative approach?) - Posted by Javier

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.

First Time Buyer (conservative approach?) - Posted by Javier

Posted by Javier on October 09, 2003 at 21:42:45:

Hello All. I’ve been with the company I work for, 4 years. I have fairly good credit scores (over 680), have no credit card debt, only school loans that are in deferrment. I live in Michigan but want to move to Florida within the next 3 to 6 months. I do not want to to buy property in Michigan for the same reason. I thought I could make my first time investment the traditional way in Florida (Ft. Lauderdale area) i.e. I get a bank loan, work with my RE agent in FL and buy a small 2 bedroom apartment to have for rent while I get ready to move to FL. Would this be too conservative of an approach?

Thanks for your insight