Re: Go in the shallow water first - Posted by Patrick
Posted by Patrick on August 11, 2004 at 12:53:45:
I’m a fearful shallow-feeder, right now, but taking my first step, and it’s VERY scary! But I’m going to do it.
Because of a job transfer, I’m leaving the only house I own in Los Angeles, and moving to Florida. Most of my friends say sell (lots of California’s are “cashing out”) and buy another - bigger! get more for your money in Florida! - house there. Others recommend selling my L.A. home, buying in Florida, but also using some of the cash to buy investment property in Florida.
Instead, I’m going to keep my L.A. house, and rent it out, and buy another to live in in Florida. That way, I’m instantly a real estate investor, without having to go through another two-step dance - which FEAR could easily cause me to delay doing. It would be easy enough to sell L.A., and buy another home in Florida, but then I’d be faced with the fear of buying my first investment property - all the questions / analysis / hesitation that comes with doing the first deal.
Now, I understand many of the risks of my decision (the L.A. market could crash, managing property so far away, etc) but I think that doing it my way will: 1) enable me to become an investor right away, 2)prevent the fear from taking over later.
It IS scary just making this choice - my wife REALLY wanted to just sell and get another house, but then she’s never really delved into the financial aspects of investing in real estate. But I’m very excited when I realize that in a few weeks, I’ll become a landlord/investor - the thing I’ve read SO many books about, listened to SO many tapes about, been to SO many seminars about, for so MANY years! Now, it’s about to happen! But I’m definitely sleeping less right now and stocking up on Rolaids! : )