buying homes to rent

[TimelessClassic]

Originally Posted by mortimer

The old rule-of-thumb was if you can get 1% of the value
of the property then you are getting a decent return.

That is, a $100k property should rent for $1,000/month.
That's not profit, it's gross rent.

Yes this seems like a standard rule.

[khuntrevor]

Originally Posted by TimelessClassic

As Mark Twain said "These are the best of times. These are the worst of times."

So true. I paid 22K and have it rented for 569. If the guy down the block that paid 139K did that it would be a hardship.

[Boomerbiker]

Buy, hold and rent may prove successful for some investors if values bottom out and start improving in the near future.

What if prices continue to drop or stay flat for many years?

Why do Investors assume prices will eventually go up?

Mean while your probably breaking even on an investment that requires lots of attention.

I'll keep flipping houses and leave reading the crystal ball to more risk tollerant investors.

[PAhippo]

Originally Posted by TimelessClassic

As Mark Twain said "These are the best of times. These are the worst of times."

actually it was Charles Dickens.



I now have 2 rentals, 2 apartments each. If I'd known then what I know now, I wouldn't have put all my money in retirement accts, just rental properties. They do require some maintainence even with good tenants but those can be written off as tax deductions, as can taxes and insurance.

Buy one if it won't strain your budget too much and see how you make out. it's not for everyone-you can't just say 'it's done' because it never is.

[volk2k]

Originally Posted by PAhippo

If I'd known then what I know now, I wouldn't have put all my money in retirement accts, just rental properties

It' not too late to buy those rentals with retirement money in a Self-Directed IRA if you're feeling confident

[PAhippo]

what's a self-directed IRA? never even heard of it.




gonna go google.