First rental property purchase - advice needed
We are looking at spending $100k out of pocket to buy a 3/2 SFH as a long term rental in Woodstock. Nerves are setting in because that's a lot of money. Is this how everyone feels or is this my intuition saying 'play it safe and leave the money in stock market?' We've wanted this for years.
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Kate, those nerves are completely normal and honestly a sign that you're taking this seriously. I don't think I've met a first time investor who didn't feel that way when it was time to actually pull the trigger.
The question worth sitting with is whether the nerves are coming from genuine red flags in the deal itself or just the discomfort of doing something new with a significant amount of money. Those are two very different things. If the numbers work, the property is in good shape, and you've done your due diligence, that feeling is usually just the natural anxiety of a big decision, not your intuition telling you to walk away.
That said, make sure you're not going in completely dry after the purchase. Having reserves left over after closing matters a lot on a rental, especially in year one when surprises tend to show up.
Happy to connect anytime, my DMs are open!