So here's my situation. I'm 20 years old and still in college. Right now, with me splitting the down payment with my parents on a house (and them taking 60% of all rental profits) I can afford a $150,000 home here in the United States.
I'm planning on renting it out, and since its in an up-and-coming neighborhood I'll eventually develop it and cash out within the next 5 years or so.
So, just wanting any advice from anybody with experience in the real estate investment field. My 5-8 year goal is to switch over to commercial investments, and go even further with that.
>>1720344
If you are able to pay down the loan with the rent it may be worth it, but remember that such a big loan will add up much interests which will remove much of your profits. I'd rather put the savings in some safe stocks, having a chance for 20-30% growth a year.
If you can get 1500 / month on your 150k home, then go for it. Otherwise, search for a property that has that price-to-rent ratio.
Don't be scared of investing outside of your city, since your area may not be suitable for B&H rentals.
>>1720386
Looking at a mortgage of about $1200 for the neighborhood, on average. But it's going to be a very desirable neighborhood in the future. Plus I'm very close to several real estate developers and could easily develop it in the future.
>>1720398
My bad. Not mortgage. My rent would be about $1200. Mortgage will be around half of that with a 20% down payment.
sounds about right...
commercial has higher beta...
multifamily is considered overpriced compared to single family in hot markets., opposite in depressed markets
You need to be keeping an eye on what happens to interest deduction if you're going to do this. One stroke of Trump's pen can really change your P/L here.
>>1720386
That's a retardedly high ratio.