Smiling JOe
SoWal Expert
So when you bought your house, you didn't care about the things which play into the resale factor?
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Priced right REOs are moving fast
- Thread starter 30ashopper
- Start date
So when you bought your house, you didn't care about the things which play into the resale factor?
SHELLY
SoWal Insider
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Bobby J
Beach Fanatic
This is what the Book "Rich Dad, poor Dad" is about. Your primary home is a liability. But the author buys other homes with cash for rental income. All monies made are used to establish more rental properties until the income passes your job and you can move into financial freedom! The American dream!
Bobby J
Beach Fanatic
Smiling JOe
SoWal Expert
and since you can afford the home, you don't care at all about the selling price when the time comes to sell?
You are a rare breed.
elgordoboy
Beach Fanatic
Gotta have a wad to start off with it appears. And I am not saying that there are not successful landlords out there but I can not do it successfully, not even as a sideline (even in this "depressed" market). Cash on cash return seems a bit paltry for what I see around. Sounds nice though.This is what the Book "Rich Dad, poor Dad" is about. Your primary home is a liability. But the author buys other homes with cash for rental income. All monies made are used to establish more rental properties until the income passes your job and you can move into financial freedom! The American dream!
Bobby J
Beach Fanatic
Read the book. You do not have to have a wad. You have to have time and start real small. It grows with time.
elgordoboy
Beach Fanatic
Will do. I took your synopsis of "But the author buys other homes with cash for rental income.." to mean he buys other houses with cash for rental income and subsequently figured I would need minimum $120,000 or so to get started. That, to me, is a wad. I am too lazy to be a landlord.
beachmouse
Beach Fanatic
There are niche markets for rental properties that will do surprisingly well, even in current conditions. Go get the book where US News ranks colleges & universities. Now look at bottom quintile schools in the middle of rural America nowhere. Now target townhomes and small 3 bedroom single family homes to buy. Should be pretty cheap in many of those places- you're talking $50-$80K for something in a safe area. Put like 30-40% down and finance the rest.
Now rent them out. Not to students, but to young faculty and staff members who are fresh out of grad school, and who don't have the money to buy on their own yet. And at those kinds of schools, there will always be a fresh stream of new young faculty members to rent to because only about half of the new faculty will last more than three years before getting some post grad years in, and moving on to a school with more prestiege or in a bigger area.
In a lot of those towns, you'll get a far, far better ROI than in any place you'd actually want to live, and young professionals are one of the lower risk groups to rent to.
Now rent them out. Not to students, but to young faculty and staff members who are fresh out of grad school, and who don't have the money to buy on their own yet. And at those kinds of schools, there will always be a fresh stream of new young faculty members to rent to because only about half of the new faculty will last more than three years before getting some post grad years in, and moving on to a school with more prestiege or in a bigger area.
In a lot of those towns, you'll get a far, far better ROI than in any place you'd actually want to live, and young professionals are one of the lower risk groups to rent to.
SHELLY
SoWal Insider
and since you can afford the home, you don't care at all about the selling price when the time comes to sell?
...I don't need to care about the selling price when it comes time to sell.
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