Buying a rental property

amother

Ecru

Tue, Mar 05 2024, 1:10 pm

amother Aubergine wrote:

True - it is a risk.
But usually you can make educated guesses. Usually if there is a major highway the frum community doesn't go over to the other side. They tend to spread to areas that are already nicer and less "hood".

Even if you miss the ball on an area becoming frum, RE is a stable investment over time, similar to an index fund.

There is also a general consensus that if and when the interest rates drop demand will skyrocket, as all the people who have been holding off buying will jump in to the market. And if the rate doesn't go down or goes up more - the prices will also rise as the rental prices rise so that the investors can cover the increased rate.

All investment is a risk - the stock market, even in index funds is a risk. Like re the market always goes up over long periods of time, but there are always dips.

Basically the rule of rental properties is buy cash or a very small mortgage that you can afford to pay even if the renters don't pay you.

Agreed everything is a risk. But if op only has 200k and is using all the money for a down payment she isn't leaving herself with a good cushion in case the tenant does damage, doesn't pay rent, or a million other things that can go wrong with the house. And when she needs the money and wants to sell there is no guarantee the market will be good and she will be able to sell and make a huge profit. If I had limited funds I would put my money somewhere safer and more available. If I had a ton of extra money to play around with then I would think differently.

amother

Tue, Mar 05 2024, 1:12 pm

amother DarkViolet wrote:

thats a lot of money!!
I bought a house a year ago in TR
I am renting it out and just covering the mortgage

I am using dena hochman management. I think its worth it
I think the property will go up and when I need the money I will sell iyh

I would defintely buy 2 houses with that money not 1
maybe there is a better area to buy but definitely buy 2not 1

How can I buy 2 houses? I’d need places where the house is like under 500k each

amother

DarkViolet

Tue, Mar 05 2024, 1:14 pm

amother Ecru wrote:

I disagree
I think 200 is A TON of money

so buy one house! a down payment will be 150 k and you will still have 50k left

amother

Tue, Mar 05 2024, 1:15 pm

amother Ecru wrote:

Agreed, that’s why I don’t want to use all of it even on 2 houses. Max id put down including closing costs is 150 but Id need to talk to someone

amother

Tue, Mar 05 2024, 1:16 pm

amother DarkViolet wrote:

I disagree
I think 200 is A TON of money

so buy one house! a down payment will be 150 k and you will still have 50k left

200k is a ton of money but considering the market these days…
We’re young, it’s not like we have a lot of savings and investments. This is what we have so far, we’re saving more separately, and we’re very lucky bh and I want to be smart with it

amother

Ecru

Tue, Mar 05 2024, 3:15 pm

amother DarkViolet wrote:

I disagree
I think 200 is A TON of money

so buy one house! a down payment will be 150 k and you will still have 50k left

50k can go really quick if the house needs any repairs. Or if she doesn't find a renter right away. Or if the renter doesn't pay rent. Or if she needs to hire a lawyer. These things happen often.