07-08-2019, 11:06 AM
(07-08-2019, 10:27 AM)GTBrandon Wrote: Come up with 3%? I planned on coming up with 20% to avoid borrowing money/paying interest on the money I already have
If you have $100k (down payment + closing costs, which the bank is going to want in cash) to put towards a down payment there might be better long term investments that you dont have to babysit and fix its A/C over the next 30 years. But it sounds like you want to play the landlord game.
(07-08-2019, 10:27 AM)GTBrandon Wrote: As for the AC bill and misc. maintenance, yeah that sucks. But also, that will mean 0 profit this year, but hopefully no similar cost for the next 10 years. Just like the market, I don't see why you should discount an entire investment for one bad year if the rest of the years make up for that loss.
Yeah it could be no similar cost for 10 years, or not. You never know. Houses can be real money pits and shit happens.
(07-08-2019, 10:27 AM)GTBrandon Wrote: What do you mean by a good rental contract and umbrella policy?
Meaning protect your ass because while 9/10 tenants will treat your house well and take care of it, there's a real risk that someone fucks up your house and/or tries to sue you because people suck. Oh, and you'll probably want a real estate lawyer to make sure that contract is good. Both of those things eat into your profit.
(07-08-2019, 10:27 AM)GTBrandon Wrote: I think it might be unwise to think the market will keep going in the same direction it has been post-2008. So I'm curious to watch it over this next year.
If you plan to buy a house and hang your hat for a while I dont think there is ever really a bad time to buy a house. I dont think we're in a speculative bubble of prices running up around here, but things have definitely flattened/cooled off, so if part of your plan is that the property value is going to pay off big time in the next 3-5 years I think you're barking up the wrong tree. I still contend this is a shitty market to buy house for the purpose of renting it out unless you're able to buy at short sale/auction, a $450k house that rents at $2700/mo on a $2500/mo house note (P&I, Tax, Insurance, HOA fees) doesnt leave you much, if any, upside for maintenance/shit happens/updates. Sure you get some money back at the end of the year on taxes, but, not that much.