My current plan to investing (First time)
Please remember I a newbie at this but please critique and help me get on track before I go through with this investment. Thanks in advance!
I am currently looking at a market within the Las Vegas, or Phoenix area at this time. This is due to the fact that I like the areas myself, and think this has potential in the future.
I am looking to invest in a SFH 100-150k. I have about 20k to invest into a property as a rental in the area I choose. I have enough cash flow (working current job) to be able to make the monthly mortgage payment if I do not have the renters in the home at any given time. (Is this a bad thing to do or looking about it the wrong way?)
Even if the renters are paying for the mortgage payments and I am "breaking even" monthly to a slight ROI on the property (assuming the extra cash flow would go back into the property as they damage things/ mortgage) I would be happy with the fact in 10+ years the home would be paid off. Easy concept no? Why would not everybody be doing this?
Also I see in the Pheonix area it seems a vast majority of homes have been purchased earlier this year and they all have gone up and re-listed 40-60k more than just 6-9 months ago? I'm assuming this is due to they were fixed up in some way but still... little odd it seems.
I think both these markets may not have a highest ROI as other states, but due to where I live the easiest way to get there via plane would be these 2 markets phoenix and Las Vegas. Even though better markets would be Cali, Ohio, Michigan exe... Its not for me (i think) Because of the cost to get there being an out of state investor.
Please help and comments will be appreciated and I hope to keep updating this thread with more questions I have in my though process at this time.