ok, i dont know much about real estate at all. i was thinking about buying a little house 1 bed, 1 bath. i was looking around the $50-$70k range, and i would probably pay around 300-500 a month right? then when i wanted to move out, i could sell it, and pretty much get my money back right? well i was wondering what was wrong about this idea. it seems too good to be true, is it possible to do this, does anyone do this? what kinds of problems would i get into if i tried this?
What is your location
alittle bit west of philidelphia, PA ive found a few small houses for around 50-80k, im just wondering if theres any catches to doing something like this. if i sell it for the same price i payed for it, then its like i didnt pay a thing, and i got a few years of free rent! so i was just thinking theres gotta be a catch/problems.
Sounds like a good idea. Most people start out in RE by first buying their own home to live in. When they want to move out, the rent out the existing home, and move to another home themselves. Tada.... you now become a landlord with your first rental property.
Of course, this is a vast simplification. You have to make sure rent will be at least as much (preferably more) than rent, taxes, emergency fix-it fund, and association fees, etc. Another tough part is coming up with the money as a downpayment for your second house when you want to move out of the first.
I'd recommend you read as many RE books as you can possible get your hands on to find out some general RE investing strategies and then ask tons of questions. Good luck.
ok cool, thanks. i see my friends spending $500 a month on rent, when im thinking, why dont you just get a mortgage, and pay $500 a month and youll OWN the home, once you move out of an apartment, your left with nothing. so how much do you guys think it would cost (a month) for a 20-21 year old to buy a $100k home with perfect credit, but not very much credit.
How about just fixing up the house, then borrowing against the equity you build to buy8 more houses! :wink:
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