How to maximize rental income from 1st property for 2nd property?
Hi BP,
When I made the purchase, I spent well below my "purchase power" if you will because I wanted to ensure my 9-5 job could cover not having a tenant (which at the time wasn't an issue because there was a tenant). Short run down, I purchased a place and sat on it for a year plus until I discovered the upside to real estate outside of "saving on taxes". So, the apartment got rented but for the last year plus my income has just been covering all expenses. The tenant that was there shortly moved out and I didn't move as quick as I should. I feel like I just got myself a raise since now I'm getting rent payments each month!
Quick edit : I think right now I'm looking mostly for buy and hold. Not sure if that matters to either of the questions below.
Couple quick questions:
1. With the new "income" is it better to save the cash for the next property (higher yielding savings account, Alley at 1%) OR aggressively pay down the mortgage and gain more equity in the apartment to utilize for property #2 (110k left at 3.875%)?
2. Is it worth going to a real estate investing club in a state you're not investing in? Seems like i'd be wasting people's time once I say "Well, i'm looking for properties in Fl. I'm just here to...chat?"
Thanks BP!
Leor