Here is my situation: Currently have one rental house, NO mortgage. So, great cash flow. Our mortgage payment for our primary residence is $400/month. Have 50k in equity in it (well, if we sold it for our purchasing price). Wife stays at home w/ child…I make 38k/yr…not much income for a family. ANYWAY, I REALLY want to invest in another rental, BUT we are planning on moving 2 hours away hopefully in the near future. Have a great candidate right next door to us for $65k, probably a 90-100k home. Is it worth having an out of state rental…well, possibly two?? Thanks so much for your opinions and insight! I am fairly new to real estate investing.
Gday new,
I currently have 2 soon to be 3 'out of town' rentals and provided you have a 'good to fantastic' property manager it is quite easy to manage them. You only pay 7.5 – 8.5 % for the property manager and they do all the hard yards. They will ensure your property is maintained etc whilst you live elsewhere.
If its a good deal buy it…..make sure you do all your research eg. ABS, rental returns, property growth figures etc. and make sure its the place you believe will grow and make you money.
Regards,
Adam
Hi new2da02
Considering the positive cash flow you're currently receiving from your existing IP and my assumption that this $65K property will also generate positive cash flow, I'd go for it. With one proviso, as Adam mentioned, i.e. the availability of a "good to fantastic" property manager.
Cheers, Paul
Paul Dobson | Vendor Finance Institute
http://www.vendorfinanceinstitute.com.au
Email Me | Phone MeAn alternative way to finance your home.
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