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The occupancy rate is probably spot on with me and I estimated conservatively as the town I live in has a small amount of rentals and a decent demand (I couldn't find one, so I bought). There is always prinicipal risk and market risk with this venture.
I am more riskphilic than the average savingadvicer here (you sound like me). The question becomes, well, okay, not when I have 35K. . .when I have 50K? 75K 100K? When I have money, then I can make money?
As Jed Clampitt said in The Beverly Hillbillies: "That's what banks are fer!"
I think the downside risk of housing going down and the market freezing up does not outweight the reward of a strong rental market and a strong upside in the long haul for a housing rebound. Careful inspection of the property for a new roof, new wiring, plumbing would be tantamount.
We may actually be able to get a 100K house and then have 10K on hand immediately for cash emergencies as foreclosures pick up here soon. I could explore alternatives as I was budgeting for a 150K house. . .I just got a kick-butt house for myself at 140K. . .so. . .I could perhaps get in with a small cash reserve for the LLC and then redistribute the cash back to the partners after some equity was built.
Thanks to all for your opinions.
The occupancy rate is probably spot on with me and I estimated conservatively as the town I live in has a small amount of rentals and a decent demand (I couldn't find one, so I bought). There is always prinicipal risk and market risk with this venture.
I am more riskphilic than the average savingadvicer here (you sound like me). The question becomes, well, okay, not when I have 35K. . .when I have 50K? 75K 100K? When I have money, then I can make money?
As Jed Clampitt said in The Beverly Hillbillies: "That's what banks are fer!"
I think the downside risk of housing going down and the market freezing up does not outweight the reward of a strong rental market and a strong upside in the long haul for a housing rebound. Careful inspection of the property for a new roof, new wiring, plumbing would be tantamount.
We may actually be able to get a 100K house and then have 10K on hand immediately for cash emergencies as foreclosures pick up here soon. I could explore alternatives as I was budgeting for a 150K house. . .I just got a kick-butt house for myself at 140K. . .so. . .I could perhaps get in with a small cash reserve for the LLC and then redistribute the cash back to the partners after some equity was built.
Thanks to all for your opinions.
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