By this time next year, I would like to be the owner of some type of investment property. The two options I'm considering are either a multi-family home where I would live in the basement to maximize rent potential or a handyman special condo I can pick up for cheap, live in, fix up and rent out covering the mortgage and maybe even some passive income. I would tern this into a cycle, beginning a new project only after I have vested 20% of the properties worth and can withdraw those funds, using the house or condo as collateral and buy another investment property.
My plan is to continue with this cycle until rich, all the while shelling money into various other investment vehicles such as the stock market of course.
The key step's in this plan will take place during the next year. I plan to strike at the right moment in order to pick up a depreciated property not only from it's present condition but also taking advantage of the current real estate slump. The other key step is purchasing a mortgage at the perfect time, catching rates at record lows and locking in the rate for 30 years, reaping the benefits of cheap money for a long, long time.
I'm keeping tabs on the mortgage rates almost daily, if rates drop to the point of June 2003 of a national average of 5.21% I may be tempted to lock it in and buy something. I doubt we'll see a situation like the one were in right now (slowing economy, sub-prime crisis, gluten of unsold houses) for a while.
2 comments:
I like the multi-family option: living in a basement that might be otherwise hard to rent out is a great option!
Google "Dave Lindahl" or "Apartment House Riches" ... I found it quite a useful course.
AJC.
7million7years.com
Thanks for coming by AJC! I'll definitely check out that course, right now though I'm not sure if I should dive right into such a large project because I wouldn't be able to cover the mortgage on my own, as a worst case scenario. But I do think I could swing a condo. Maybe the multi-family would be RE investment numver 2.
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