I am VERY green when it comes to real estate investing. I am a homeowner (have been for 3 years now) of a house that I paid 122k for. I have the mortgage down to $107k, and plan on paying as much as possible on it to get it down to $0 in a year and a half or so.
I have about $30,000 cash right now in savings, and am wondering if I should go right now and begin buying another property to rent out, or if I should wait until I pay off my existing house in a year and a half. What are your thoughts?
Banker · sydney, Nova Scotia · Member since 2008 · 100 posts · 8 votes
18y
You could take the year and a half to learn the business of owning rentals and pay off your mtg. I don't think it will take you anywhere near that long to learn the business if that is something you realy want to do. Keep reading the posts on this form on how to buy properties properly (at the right price) and manage them. If you buy right you should be able to complete both your goals. A properly purchased rental property should pay for itself right away with positive cash flow used for unforseen expenses. It shouldn't cut into any of your personal finances. If you have to use some of the money you have for downpayment money, then you can get your rental and pay off your house in 2 yrs instead of one and a half.
i want to jump in right now, mainly because the market here is so down. All houses are really at a low point, so it seems like now is the time to buy. I just don't have enough knowledge on it yet.