I could use a little advice

[alfonzomarroquin]

Hi everyone. I'm looking for some advice. A very very quick summary of my situation:

I decided to accept a job offer in Miami which will allow me to save an average of 20,000 every year. I was thinking that I don't wanna just put that money in savings account. I wanna invest it in real estate.

My initial idea was to find a property for around 80,000/100,000 put 15,000/20,000 down and rent it. I was thinking mostly Apartments or Townhouses.

Can anyone give me advice on my plan, or even how would you invest that money every year if you were in my shoes.

Thanks everyone!!!

 

[totallyproperty]

Hi Alfonzomarroquin

First of all welcome to the forum - we hope you will find it useful.

I was wondering what kind of rental income you would expect on your future property purchase? In principle the idea of placing down a large deposit and renting out the property is good and would give you some "head room" if you had to sell for some reason.

Have you thought how you would manage the property? Would you be local to look after it? Are there tax implications you need to consider?

There are quite a few things to think of.

Regards,

Mark

 

[alfonzomarroquin]

I was wondering what kind of rental income you would expect on your future property purchase? In principle the idea of placing down a large deposit and renting out the property is good and would give you some "head room" if you had to sell for some reason.

Have you thought how you would manage the property? Would you be local to look after it? Are there tax implications you need to consider?

Hi Mark, Thanks for replying! I apologize in advance for my long answer/question. To everything I'm about to write, feel free to correct me if I'm not right.

Regarding your first question, this is more like a future retirement plan, so, rental income is not my main goal right now, I would like to see rental money pay for the mortgage, property taxes, insurance, etc. And the remaining money, which would be around 200/400 dollars, I would just keep it in the bank, or make extra payments towards the principal.

I'm aiming to pay 20% down on every property that I get to avoid Mortgage Insurance, which in my head sounds like a good idea, but I would like to know your thoughts on that.

When it comes to managing it, I was honestly thinking of getting a good management company. I know they charge a percentage (around 10%),but I wanna focus on my day job (which is what's gonna generate my cash to invest) and leave the maintenance calls and inspections to the Management company.

I already owned a House (before my divorce) and I rented it for a while, and I honestly didn't have that many maintenance calls or problems. But here were my issues with taking care of it directly:

- Although there weren't many calls from them, the few times that there were, I wasn't able to go to the property right away, cause I was working. Or even answer the phone, which to them, was a bit frustrating.

- One of the most attractive things to me about getting a Management Company is their ability to screen tenants, I'm assuming those companies have experience, therefor they will most likely find better tenants than my self. Which will equate to less vacancy time.

When it comes to your Taxes comment, I don't know what you mean

Thanks again for your time Mark.

 

[DebasishSaha]

thank you to