Real estate investment.. Need help

[JiggaMan]

I have about 20K sitting and waiting to be invested into something. I figure real estate is probably my best bet. Only thing is that I am not being forced out of my house so I am thinking it would be good to rent the house or condo out and hopefully flip it at a later time.

I'm just not sure what exactly my best bet is.. do I renovate? do I straight up rent out... do I just buy and flip? Hmmm....

And like I said, I don't really want to move out right now... i just want to get a place to invest in and make some money.

Thanks

[djayz]

if you already own a property in which you are not living in then rent it out.

if your hoping to buy some form of real estate with 20k it isnt going to be something you can live in.

you can probably invest in some real estate funds or stocks with 20k but you defintely wont be able to buy a place and flip it for some quick money. add another 300k and you can try.

[crazyning]

Get a mortgage on a house, and then rent it out. Charge the exact amount of your monthly mortgage payments. Then you'll have an extra house in 10 or 20 years.

[HRD2PLZ]

I would purchase and rent it out, Calgary's rental market is pretty good since real estate has shot up so much.

[D. Dub]

Good advice and a good long term strategy --- less risk than renovating/flipping.

[JiggaMan]

Yeah I was leaning more towards renting it out. Now would it be best to get a bungalow with a basement sweet so I can rent out to multiple tenants?

I hear the city is pouring a bunch of money into Dover and there are some new plants going in over there. Would it be wise to grab a place there? Or would it be better to go near a University for them to rent out?

[D. Dub]

Originally posted by JiggaMan
Yeah I was leaning more towards renting it out. Now would it be best to get a bungalow with a basement sweet so I can rent out to multiple tenants?

I hear the city is pouring a bunch of money into Dover and there are some new plants going in over there. Would it be wise to grab a place there? Or would it be better to go near a University for them to rent out?

Now you're talkin!!! A up-down rental house is the way to go!!!

Both areas would be good. Although the pricing around the university is astronomical especially if you only have 20K to put down.

Another isn Forest Lawn which will LIKELY be a transition area over the next decade.

[HRD2PLZ]

If your looking for an up/down rental make sure its zoned R2. Otherwise its an illegal suite. University area is good, but price will be high and the tenants tend to be a little more transient (especially come summer). Somewhere in Dover and area should be fairly easy to rent out, if you plan to keep the property long term you should make some decent money on the market as those areas increase in the next few years due to their proximity to downtown.

[The_1]

should get a house or condo and just rent it out
lots of rentals are getting picked up fast
im still kicking myself for selling my rental property 4 months ago and now its gonna cost me about 40Gs more to get into the same place

[frostyda9]

Originally posted by D. Dub


Another isn Forest Lawn which will LIKELY be a transition area over the next decade.

If I had the $ for an investment property I'd buy anything I could in the far west part right now. The problem is, the prices for a many of the places are already over $250k It's just too close to downtown to remain a Compton-ized area for long.

[gp36912]

Originally posted by crazyning
Get a mortgage on a house, and then rent it out. Charge the exact amount of your monthly mortgage payments. Then you'll have an extra house in 10 or 20 years.

close. but you would actually charge 100 or so more than your monthly mortgage payments. because you would still have to pay property taxes, and also any repairs you would need to do in between renters. trust me on this one because its first hand experience. that way you would not add extra income to your annual taxes etc.

[variable_x]

Originally posted by gp36912



close. but you would actually charge 100 or so more than your monthly mortgage payments. because you would still have to pay property taxes, and also any repairs you would need to do in between renters. trust me on this one because its first hand experience. that way you would not add extra income to your annual taxes etc.

Rent out your property for the same amount as your monthly mortgage, property taxes and repair cost with 20k down? That sounds almost too good to be true. If that's the case, I am more than willing to take out a 20k personal loan from the bank to use it as downpayment for a house and let someone else pay the mortgage for me.

[Weapon_R]

Originally posted by variable_x


Rent out your property for the same amount as your monthly mortgage, property taxes and repair cost with 20k down? That sounds almost too good to be true. If that's the case, I am more than willing to take out a 20k personal loan from the bank to use it as downpayment for a house and let someone else pay the mortgage for me.

uhh, it happens all the time.

Best strategy would be to buy today, rent for 6 months, renovate the 7th (paint, carpet, maybe some ceramic tiles) and then sell. If you can do the renovations yourself, it won't cost much at all. Combine the renovations + 6 month appreciation and you will have quite the profit.

[variable_x]

Originally posted by Weapon_R


uhh, it happens all the time.

Best strategy would be to buy today, rent for 6 months, renovate the 7th (paint, carpet, maybe some ceramic tiles) and then sell. If you can do the renovations yourself, it won't cost much at all. Combine the renovations + 6 month appreciation and you will have quite the profit.

Hmm... I must be doing something wrong then.

I currently own a house in Arbour Lake that I would like to rent out. The house is valued at 320k right now, so with 20k down, I have approximately 300k worth of mortgage.

So mortgage payment comes out to about 1700 per month at 5% interest rate with 25 year amortization. Property tax is about 2000 / year so 160 / month. Now I need to rent it out for $1800 per month before I break even. It seems that similar properties are renting for $1300 / month. Are they undercharging, or am I doing something wrong. Or is it just not a good rental property? If someone can straighten my math out, I would be interested in purchasing a second property for rental.

[Weapon_R]

Originally posted by variable_x


Hmm... I must be doing something wrong then.

I currently own a house in Arbour Lake that I would like to rent out. The house is valued at 320k right now, so with 20k down, I have approximately 300k worth of mortgage.

So mortgage payment comes out to about 1700 per month at 5% interest rate with 25 year amortization. Property tax is about 2000 / year so 160 / month. Now I need to rent it out for $1800 per month become I break even. It seems like similar properties are renting for $1300 / month. Are they undercharging, or am I doing something wrong. Or is it just not a good rental property? If someone can straighten my math out, I would be interested in purchasing a second property for rental.

You are buying in the wrong area

A 220k home @ 20k down leaves $200k worth of mortgage, payments with taxes come to approximately $1200/month, a bungalow can be rented upstairs and down and generate anywhere from 1200-1600/month.

There are still tons of property available in the 200k range, esp if you want to rent them out.

[variable_x]

Hmm... maybe I should sell my house then and purchase cheaper house...

I would be interested in where I could purchase bungalows for around 200-250ks. I just ran a search on MLS. The result seems scarse. Of course I would like try to avoid areas like Forest Lawn because property appreciation seems quite low compared to other areas of the city.

Sorry for stealing the thread and thanks for the help .

[The_1]

Originally posted by variable_x
Hmm... maybe I should sell my house then and purchase cheaper house...

I would be interested in where I could purchase bungalows for around 200-250ks. I just ran a search on MLS. The result seems scarse. Of course I would like try to avoid areas like Forest Lawn because property appreciation seems quite low compared to other areas of the city.

Sorry for stealing the thread and thanks for the help .

If you want to sell your house PM me all the details
im looking at something up to 320K

[HRD2PLZ]

Anything that is a good buy is pretty much SOLD or C/S before it is even uploaded to the public MLS site.

[frostyda9]

Originally posted by variable_x
I would like try to avoid areas like Forest Lawn because property appreciation seems quite low compared to other areas of the city.

Word on the street is that some rezoning may be on the horizon....

The house I was watching with great interest sold yesterday. The owner turned a $134,000 profit in 4 years, with a minimal initial investment and low mortgage payments due to the low original cost of the house.

[gp36912]

well the reason why i can do what i said is that i had 100k to put down into the house and that left me with 120k in mortage. monthly payments are 900 and i am charging 1150,
80 goes to rental management company, the rest is for insurance etc. with that we are just pulling even with a little left over for minor fixes at the end of the rental term