| Real Estate - bad investment? |
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bamboo
New Member
Cash: $ 1.40
Posts: 7
Joined: 19 Jul 2005
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| Rental investment |
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Need some encouragment..
Just bought me 1st investment property. I used a 1031 exchange to transfer $70K into a $216K condo in a private highy desired golf course community. The deal with this condo is the 81 year old owner wanted to take her money off the table but part of the deal is she demanded a 1 yr lease with a option for 2 years. The condo is very well kept in in great shape. My mortgage including interest, condo fees and taxes will be $1000.00 a month. My rent is $1125.00 with a $381 per year insurrance policy.
So I'm making some money but not a ton. Home/Condo prices in this area are climbing 20-30% a year. This will likely not continue but 5-10% would be reasonable to assume.
Your thoughts please? I wanted a single family home but for $216K you don't get much around here. So I opted for a low maint condo with a renter in place.
Thanks!
Buckle up...this baby is going to the Moon!
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Tue Jul 19, 2005 3:46 pm |
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bong12187
Preferred Member
Cash: $ 24.50
Posts: 120
Joined: 31 Jul 2005
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Totally agree with Nextmillionaire. But I just want to add something and this is to ensure that you do the number before you buy. The # will tell you 75% of what you are getting into. The other 25% is for your due diligence and and actual management of the property. Education and drive are also keys for success. Without them, you might hit a brick wall.
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Mon Aug 01, 2005 6:43 pm |
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vectorz
Contributing Member
Cash: $ 7.30
Posts: 36
Joined: 24 Aug 2005
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quote:
Originally posted by pattyflip
Not sure of the exact percentage, but 80 - 90% of millionaires attain all or most of their wealth investing in real estate. Not totally sure of this fact but i've heard it somewhere.
Say what? That sounds like BS.
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Mon Aug 29, 2005 10:55 pm |
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swjun
First Time Poster
Cash: $ 0.20
Posts: 1
Joined: 01 Sep 2005
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| Cash flow and time horizon |
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I agree with Rolo. What really matters is cash flow. If you can have positive cash flow, I think it's worth to do an investment on real estate since in general your return is materialized from leverage.
In addition to it, you ought to consider time horizon as well. Do you have good buffer from the short term market fluctuation or short term negative cash flow from expenses? Do you have some cash to go through life events without being forced to sell your property? Something like those...
I am an apprentice
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Thu Sep 01, 2005 10:44 pm |
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