I invested in real estate heavily - when I sold real estate in Colorado. Ended up with a lot of negative cash flow properties and my husband got a once in a lifetime job offer in another state - so we sold everything at a loss. Looking back, of course, (with the benefit of hindsight) - we had lots of other alternatives, it just didn't seem like it at the time.
Now, as a retiree (sort of), I've become interested in investing again.
I wrote a couple of offers last week on foreclosures in my area:
1. House built in 1960s - 4 BR/2 BA about 1750 sq. feet. $82,000. Will rent for about $1100/month. I would finance this one 5/1 with 20% down. Will need about 5-10,000 invested.
2. House built in the 1920s - 2 BR/1 BA about 1300 sq. feet. Needs about $10,000 invested. I would pay cash for this one. Would rent for about $800/month.
I did not expect to get an accepted offer on the 2 BR. It was listed in the high 50s and I threw the offer of $30,000 out there...assuming it would not be accepted but thinking I may come back later if it doesn't sell and make the same offer.
I can go forward with one or both of these. I'm feeling some serious buyer's remorse. Primarily, because although I've lived here for some time - I have not bonded to the area. I do not feel the same level of confidence in real estate as when I actually worked in real estate and had easy access to all stats. House #1 is on well and septic and I've not had experience with that situation either.
I had a friend ask me last night - why would I even want to do this? I am comfortable and really am not in a situation in which I need to generate more money. I think the answer to that is - I got out of real estate ownership in Colorado and Florida at the wrong times (due to husband's job movements); I think I'd like to show my daughters and son that real estate investments can work.
Not sure what my question is! Most of you are far younger than I - wondering if it is truly crazy for someone in their 60s to be doing this? Opinions?
@Kay Winters I don't think it's crazy at all!! I say if you want to do it, go for it. As long as you have the passion for something, you will be successful. I'm 39 and just getting started (wish I woke up and invested 15 years ago) but it is what it is. Today is a great day to make another step towards your goals. You definitely have the background to make it work. I wish you luck!
@Kay Winters Buyers remorse. It always seems more attractive when you don't think you can get it.
While you can definitely do this at your age--I've met a woman in her late 80's who is still an active investor--it doesn't sound like you have a particular interest, passion, or need to do it. You do have a goal, to demonstrate to your kids that it can be done successfully, but you can simply hook them up with some local investors to show that.
So you are saying both offers have been accepted? Could you flip the houses instead of holding them as rentals?
@Kay Winters forget the well and septic house. Lots of headaches. They should be tested and then after time they need to be replaced and are large expenses. In addition, the regulations are constantly changing and what worked when it was built is no longer acceptable. The list goes on. Unless you already know about them and understand the ins and outs you could be in for another expensive education.
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