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Real estate investing

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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.
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>>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.
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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.
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>>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.
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>>1720398
My bad. Not mortgage. My rent would be about $1200. Mortgage will be around half of that with a 20% down payment.
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sounds about right...
commercial has higher beta...
multifamily is considered overpriced compared to single family in hot markets., opposite in depressed markets
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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.
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>>1720386
That's a retardedly high ratio.
Thread posts: 8
Thread images: 1


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