Ive got cash, own several rentals outright, but can't get a loan mainly because I don't have a job. My tax returns show I have ample annual income . He isn't telling you about all the repairs on houses are very costly and time consuming, contractors will take a lot of your cash flow. I know, Im doing it.
You're 100% right! Planning for long-term maintenance is crucial when investing in real estate, and it can absolutely be time-consuming calling contractors to fix your properties regularly. Real estate is an amazing investment, but it is a business and will require a lot of your time and energy
Exactly! All these “gurus” never consider the risk involved. And they all sound like you are stupid if you don’t leverage like Kiyosaki. Also, the moment in your life you are at is crucial. If you start with real estate in your 30s is one thing; if you are in your mid 50s and eyeing retirement in the next 10 years or so, it’s a completely different thing.
You can absolutely buy a rental property for $200,000 or less. The key is to focus on investor-friendly markets, as some areas are more expensive than others
No. I'd put it on one property, especially depending on the market area and if I can pay that house off quicker, which I've done. Then I own it outright. Also I work a full-time job as a nurse, often many hours. Rn. I don't have the time for 10 rentals and don't want to pay a property manager. Everyone's different.
Not really a cussion. All in one property, and 1 crappy tenant you’re screwed. Best having a balance, go for maybe 2-3 and keep rest in liquid accounts that generate interest as safety net - that’s what my strategy would be
40% down if possible if I remember correctly. The book billion dollar portfolio by Brent Sprenkle goes into this. If you're over-leveraged and the market tanks you could end up owing more than the property is worth. Then the bank forecloses on you if the tenant moves out and you can’t make payments and you’ll sell for a loss. If you have a steady recession proof job and you can cover the payments if somebody moves out then that might be an exception. Don’t build a house of cards that could come crashing down at any small hiccup in your plans.
I doubt a bank would give a loan with only 10% down anyway. Probably need at least 20% and even then the rent might not even cover the note payment. Probably need more than 20% down for it to work with bank which starts to defeat the purpose of the advice.
Pretty much anywhere in the Midwest other than Chicago and Minneapolis. It won't be the nicest neighborhood, but it will be nice enough. If you are willing to risk it, there are plenty of houses under 100k in the Midwest but it's gonna be a shaky neighborhood.
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Ive got cash, own several rentals outright, but can't get a loan mainly because I don't have a job. My tax returns show I have ample annual income . He isn't telling you about all the repairs on houses are very costly and time consuming, contractors will take a lot of your cash flow.
I know, Im doing it.
You're 100% right! Planning for long-term maintenance is crucial when investing in real estate, and it can absolutely be time-consuming calling contractors to fix your properties regularly. Real estate is an amazing investment, but it is a business and will require a lot of your time and energy
Exactly! All these “gurus” never consider the risk involved. And they all sound like you are stupid if you don’t leverage like Kiyosaki. Also, the moment in your life you are at is crucial. If you start with real estate in your 30s is one thing; if you are in your mid 50s and eyeing retirement in the next 10 years or so, it’s a completely different thing.
ah yes the mythical 200k house. cheapest LIVEABLE one bedroom house in my area is 350k
You can absolutely buy a rental property for $200,000 or less. The key is to focus on investor-friendly markets, as some areas are more expensive than others
No. I'd put it on one property, especially depending on the market area and if I can pay that house off quicker, which I've done. Then I own it outright. Also I work a full-time job as a nurse, often many hours. Rn. I don't have the time for 10 rentals and don't want to pay a property manager. Everyone's different.
Not really a cussion. All in one property, and 1 crappy tenant you’re screwed. Best having a balance, go for maybe 2-3 and keep rest in liquid accounts that generate interest as safety net - that’s what my strategy would be
40% down if possible if I remember correctly. The book billion dollar portfolio by Brent Sprenkle goes into this. If you're over-leveraged and the market tanks you could end up owing more than the property is worth. Then the bank forecloses on you if the tenant moves out and you can’t make payments and you’ll sell for a loss. If you have a steady recession proof job and you can cover the payments if somebody moves out then that might be an exception. Don’t build a house of cards that could come crashing down at any small hiccup in your plans.
I doubt a bank would give a loan with only 10% down anyway. Probably need at least 20% and even then the rent might not even cover the note payment. Probably need more than 20% down for it to work with bank which starts to defeat the purpose of the advice.
That’s not gonna work Southern California because a 1700 square-foot houses 1.3 million.
Many investors in expensive markets often choose to buy rental properties out of state due to the high costs in their local areas
Exactly 💯
Where do you find 200k properties? I want to buy some 😂
Pretty much anywhere in the Midwest other than Chicago and Minneapolis. It won't be the nicest neighborhood, but it will be nice enough.
If you are willing to risk it, there are plenty of houses under 100k in the Midwest but it's gonna be a shaky neighborhood.
5 properties legals plus mortgage arrangement fees valuation fees etc your down by 30-40k don’t listen to those stupid yourubers 😂