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[SIZE=3]I own a business in a completely different filed so obviously I don’t know much about real estate, I would like to invest a bit in real estate as prices are down, I'm looking to purchase a place in price range of 100k to 150, rent the place for a few years, don't mind to hold it as long as I need and eventually sale the place, even if its means I need to wait ten years from now, as the money I will invest is currently misused. So why not collecting the rent money for now and sale it higher years from now and if it's won't come out as I said I still earned the rent money.[/SIZE]
[SIZE=3]I don’t believe prices will go down more then they are ten years from now all due I might be wrong, and if they are the rent money over the years will compensate on this.[/SIZE]
[SIZE=3]Am I thinking correctly? Or there are things that I didn’t consider or looked at?[/SIZE]
[SIZE=3]Can any one recommend a good place to invest?[/SIZE]
[SIZE=3]I notice there are great prices in TX and FL? What do you think?[/SIZE]
I'll puruse your post and see if I'm qualified to answer. In the meantime, forget the formatting attempts and just post. It's kinda' difficult to read your it as it stands.
There are some areas that will still go down in price but there are also good bargains out there in areas that have already dropped and have stablizied but probably won't go back up for quite some time..
Make sure the rental market is good where you choose.
I have not had any problem getting renters in my area but other areas may be harder.
1st Lose the formatting stuff....it makes it hard to read.
2nd Like any investment program, learn all you can about the subject before you spend a dime. There are a lot of people out there that make lots of money off people that don't know markets or processes or liabilities. It is called risk management. If you are betting on finding 100% honest people to help you and that you will break even regardless of circumstances, you are better off playing slots in Vegas.
3rd Know the market you are investing in. I can sell you a house tomorrow for under $15,000. Is it a good buy? Depends on the market it is in. I bought a house last week for $11,000. In three weeks I will have it ready to rent for $500 a month. I know the risks, I know the market, I know costs, I know construction, I know value, I know real estate. I know these things cause I've been doing it for 45 years. That knowledge comes either through experience or a price tag. If you don't know the market, the risk, or the industry, expect to pay retail for the properties and retail for the attorney, and retail for everything you do. Consequently your margins will be slim or nonexistent.
Find a local Realtor who also handles property management. They should be able to help you find a good rental property. They'll know the best rental area/style home to help you make rental profit and long term appreciation profit. Now is a great time to buy/rent and hold since you can wait for however long you need to. You may even want to purchase 2 75k rentals or 3 50k rentals for with that 150. Affordable condos can be a real cash cow for monthly rentals.
One of the most important reasons for investing in RE is the way Real Estate pays vs. any other investment. An initial understanding of these fundamentals will help build a solid foundation from which you can begin to answer why you wish to invest in real estate and if it is a good fit for you.
Real Estate is the only investment vehicle (to my knowledge) that can pay you four ways - appreciation, depreciation (taxes), mortgage equity, rents.
All of these will come into play and must be analyzed carefully with an understanding of what your investment strategy is and if it is realistic i.e. - How much rent can you or should you charge? How much is enough? Would it be worth it if you only collected $50.00 over the mortgage amount in rents per month? Why? or why not? What is the area in which you wish to buy doing now? Historically? Future growth? Do you wish to manage the property? If not, who will? Repairs? Tax preparation? Applicant screening? Escrow security deposits? (In NC) Do you need a license to manage your own properties? Is the area viable for tenants? Multifamily vs. SF? Buy and hold vs. Valueplay?
There are many homes in Hernando County in the $60-75K range.
As someone mentioned aerlier, you may be better of getting 2 or 3 smaller homes for that same $100K-$150K.
Of course if you want something newer so that you don't have to worry about repairs as much you could look for a brand new 3 bedroom home between $125K-$140K.
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