I have some play money, I need some direction... - Posted by JoshTampa

Posted by JoshTampa on June 07, 2005 at 18:41:38:

I’m looking to invest locally, in the Tampa area(Riverview, Wesley Chapel, Brandon, etc…). I know there is plenty of opportunity around here, and development is non-stop. As far as return, I don’t have a set number in my head, I just want to see what works, and line up my first to make some money. Of course, the more the better, but that’s always the case. I’d like to make it worth my while. I’ve been looking into depositing on a new home, but there are stipulations in the builder contracts that lock you in to occupying the place for 12mo after closing. This puts that option out the window, unless I find a builder that allows investors, without financing as an investment. I haven’t really looked too hard for this kind of builder, I’ve only called a couple…

I have some play money, I need some direction… - Posted by JoshTampa

Posted by JoshTampa on June 06, 2005 at 18:42:43:

So, I’ve made some money on my prior residence, and I have about 20k cash coming to me soon. I would like to reinvest this into something as a learning experience, and to make more money. I’ve thought about picking up a rental, or placing a deposit on preconstruction. I could pick up a rental as owner occupied, and get a decent loan and rate, and cover the PITI, and just collect the apprecation. I could do the same thing with a new place, by building off of a deposit, closing, and renting, all the while letting the place appreciate. These are the two that seem easy, can anyone else point me in a direction? I’m ready to take a plunge, I just don’t want to drown!!

Re: Play money - Posted by speednxs

Posted by speednxs on June 07, 2005 at 09:51:38:

There is nothing wrong with your strategy. There are other expenses like repair allowance. Do the math before you buy a specific property to minimize the surprises. On the other hand property taxes, depreciation and mortgage payments may be nice tax deductions. The higher your income (to a point), the more valuable the tax deduction. It can be hard to have positive cash flow (recurring income) in the early years. Capital gains (one time income) can be very good, due to leverage, even if housing prices only raise 6% a year. But, it is a gamble. There is a substantial amount of effort in being a landlord compared to being a stock owner. Still, nothing that should scare off an employee. Just because “buy and hold” isn’t particularly clever, doesn’t mean it isn’t worth doing.
Good Luck

If you want to play with your money, go to Vegas - Posted by Sean

Posted by Sean on June 07, 2005 at 08:23:32:

Owning Property is not a game, at least not if you want to be successful at it. If you want to play the last thing you need are tenants or property maintenance… If you view real estate or a game, your head honestly isn’t in the right place…

Re: I have some play money, - Posted by TROY SMITH

Posted by TROY SMITH on June 06, 2005 at 21:33:57:

Where are you ooking to invest and what return are you hoping to get on your money?