Right Path?

Question

Hi everyone. Thank you to those who have reached out with welcoming words and encouraging me to pursue this venture. I'm excited, nervous, scared, motivated all at the same time.

My question is about money.  I own a single family home and I want to turn it into my first real investment and rent it for residual income. I plan on having a management company handle the grunt work, because I just don't have the patience to do it myself. I want to downsize to a smaller more quaint property like a condo and possibly rent out another unit, too.

I know it's going to take money and I do have some cash on hand to start. What's a good starting amount to have saved? I can afford a nice condo between 60-130k and maybe take some money out for improvements/upgrades and then rent it.  I guess I'm asking how much do I have to invest of my own money to get started initially before getting funding elsewhere.  I live in the Dallas area. Great market, lots of vacant properties, with awesome $ potential. I hope I'm making sense. Thanks.

Brent Coombs · Answer

@Amma BoatengI'm wondering if "lots of vacant properties" is more of a hindrance than a help? ie. How can you ensure that it's not YOUR  investment property that becomes vacant in the future, when you don't want it to be.

Your questions will also need to be taken up with your preferred Bank - or ask lots of different Lenders.

At the end of the day, you will likely have to trade-off some House life-style for shopping life-styl (OOPS, I didn't realize about the double post - below)! Cheers..

Brent Coombs · Answer

@Amma BoatengI'm wondering if "lots of vacant properties" is more of a hindrance than a help? ie. How will you ensure that it's not YOUR  investment properties that become vacant in the future? Should be OK though, if you have Plan A, Plan B, Plan C AND Plan D.

Your questions might also be best taken up with your preferred Bank - or ask lots of different Lenders.

At the end of the day, you will likely have to trade-off somewhat between House life-style and Shopping life-style (Asset-rich vs Income-rich), but it's nice to HAVE choices. All the best...