purchasing a rental property
10-15-2012 01:48 PM
i closed on a property two months ago and it feels great! thanks myfico....couldnt of done it without you...
im considering getting a rental property just to create some passive income on the side. believe it or not there are 62 properties in the my city that are between 10k and 20k. the rent in these neighborhoods are roughly 700 - 800 for the house. we are talking 3 bedroom row homes in the inner city. low income area. however there is an over abundance of people. section 8 maybe? i can almost gaurentee to have the place rented. im thinking simply in terms of numbers...puchase for 15k, invest 10k to gain occupancy. total investment of 25k. at 800 a month i will get my return in a little over 30 months?! then collect rental income for the remainder of my days while the property gains in value (hopefully)....then just move on down the line to maybe a second or third?!
i have the liquid money. my fiance has the liquid money. after we closed on our house and rehabbed the house we are sitting on close to 75k between us. i have my own business and she is in the corp world...both of us are starting out but the idea of retirement seems to be in the discussion....i dont have an IRA, 401k, portfolio or any sort of retirement....im 30 years old. the idea of snatching a couple cheap cheap properties might seem like a wise move?!