| HELP! Rental Condos as investments? |
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eric99
Member
Cash: $ 2.00
Posts: 20
Joined: 04 Apr 2007
Location: boston mass
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| HELP! Rental Condos as investments? |
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My husband and I have been thinking of purchasing a couple of condos to rent out as an investment for us. Is this a good time to do this? We have been thinking about either Las Vegas, Scottsdale or South Florida, but are not sure if this is even a good time to jump into the market. We do not have strong real estate investing experience; our mortgages on our current homes have been paid off, and this would be a cash deal on our end.
Any advice would really be greatly appreciated. Are we better off purchasing properties in different states or all in the same city
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Mon Apr 09, 2007 8:17 am |
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oldguy
Senior Member
Cash: $ 751.85
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Joined: 21 May 2006
Location: arizona
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When a market turns is anyone's guess - it cannot be predicted. I have never made money by waiting for prices to come down so I can buy. But I have made lots of money by buying now and watching the prices to go up and make a profit. Since RE always has a long term upward trend, you wnat to own it long term.
But your cash position works against you - the Return on Equity on unleveraged RE is low, about 6%. If you could leverage your RE above about 4:1 you can get the ROE up to an acceptable level.
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Mon Apr 09, 2007 3:44 pm |
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Bid-Palace
Full Member
Cash: $ 4.21
Posts: 74
Joined: 17 Mar 2004
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I am not sure on Vacation Rentals and seems more of a risk then just buying a rental property for cash-flow. Those areas you are thinking about buying in are very high and some say there has been a burst there. Fortunately, with Real Estate, if the market is bad for selling, then you rent out and wait for the market to change. Especially with all these Sub-Prime stuff going on. A lot of tenants will be looking & already looking for a home. I would personally suggest Texas to invest in, a lot of Cali investors are doing this. IF you want more information on a safe, cash-flow portfolio ready to go on auto-pilot.. PM me.
Take Care
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Mon May 07, 2007 2:24 pm |
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