Investment property

[skives]

Do you or should you already have a lot of cash on hand if you want to get into investment properties to make extra cash?

[YLTL_Dan]

Yes.

Investment properties are expensive, and you need to be able to cash flow a lot of problems that can come with them. These problems include maintenance, repairs, and the cost of a vacant house. I've also heard many stories of damage caused by renters on their way out - meaning you are not only missing payments, but you're also dealing with costly repairs!

I like the idea of investment properties, but I'm going to wait until my house is paid off and until I can cash flow the new properties.

[bjl584]

I'd be more inclined to do commercial real estate investing as opposed to residential. Leasing storefronts or something similar. But, you need a lot of capital and need to be prepared to handle the expenses that come with it.

[97guns]

Do you or should you already have a lot of cash on hand if you want to get into investment properties to make extra cash?

rental property is what im retired on. i dont need to worry about the 401K or pension, is social security gonna be there?who cares .....my thoughts are that you should have enough cash on hand to buy one outright, once you own one free and clear you can mortgage it for 80% of its value, put down another 20% out of pocket and buy another outright, keep doing this and by the time you know it you have 3, 4, 5 houses kicking back.

with this method and in my market i can get my 20% returned to me in 5 years then everything else is pure gravy.

[DRILLINDK]

I'm actually looking for a duplex to purchase as my first home right now. I'm approved through an FHA loan and will only put down the minimal amount possible. I could down 20%, but I'd rather have the reserve capital.

I plan on getting my feet wet with this one for 5+ years and then start accumulating more as I become more comfortable being a landlord and financially.

[97guns]

great decision on a multifamily. my first property was a triplex in las vegas that didn't work out because i live in ca. i went through 3 property managers in 2 years and ended up getting out of it - good luck with your endeavors.

[snafu]

Before deciding to be a landlord look carefully at how much time you can devote to being a landlord , skill sets to handle maintenance and routine home repairs and your experience coping with difficult people. Tenants can get downright nasty when they are in so much difficulty they no longer pay rent due. If utilities are not paid, water, heat and electricity can be discontinued and result in damage.

[Kooshiball]

If we look for the deals diligently, we don't really need a lot of cash to invest in real estate. Typically, I invest in income properties with $2000 to $3000 and collecting more than $3000 a year per property. After the first year, I get all the money back and it will be pure profit.

Yes. I agree with some people said it can be costly if you don't have team (Property management, banks, accountants, lawyer etc). But if we have solid teams in place, real estate investing is very lucrative in my opinion.

[Leishrac]

Investing certainly needs cold cash in hands in any kind of business. Property investment is a good choice of investment hence money involved with it not a joke. You need to first determine what kind of property and its location as it influence property price. Also your willingness of being a property manager is a must once you've already had a property, you must devote time on it.