Buying low cost investment properties to rent?

I am very interested in buying low priced multi family homes and renting them out. My husband is in the Air Force so we don't currently own a home so our mortgage and utilities would be of no worry.

I want to know if you buy one property how long is it before you can buy another property?

Is it wise to pay for at least half of the first property, in order to quickly turn a profit and then look to purchase the next?

Should we buy low cost fixer uppers and pay cash for them and get a loan to fix them up and them look for another property?

I just want to know if it is a good idea. I think it is, because all people no matter their social status need a place to live. If you have had any experience with this please share and let me know if it is worth all of the work.

Thanx!

Buying low cost investment properties to rent?

There is no minimum time, but you're going to need to be very careful to watch cash flow from the property. You're also going to need a significant down payment. 5-10 percent minimum for 3-4 units, absolute minimum of 20% for 5+ (and probably more than that)

You want stuff that you can rent for a positive cash flow ASAP. Once you have that, you can make it more attractive at your leisure. If you can't get a positive cash flow, stay away unless you have the money to put into the property indefinitely.

Buying low cost investment properties to rent?

I was in the Army, we purchased income property while in the Army. You may use your husbands GI bill to purchase 1-4 units. Using this method you do not have to come up with an money out of your pocket as down payment or closing cost.

The other thing is it give you practical experience at learning how to be a landlord with the smaller unit. Remember if you use the Gi bill to purchase this 1-4 units you must stay in one as the GI bill is for you to purchase a place for you and your family to reside in.

There is a double help in this for you. The Air Force is giving your husband housing allowance to residing off base, you have 3 tenants to assist with the mortgage payments. This is a win win situation for you no matter where you are. Don't forget the tax write off for the interest you pay on the mortgage as well as what you do to keep the units inhibitable.

You can find a fixer, but I am sure Veteran's Administration will not allow you to purchase this type property as the VA only guarantee property that is ready to be occupied immediately

When we were assigned overseas if it was a tour where I could take my wife we always found a local real estate agent or property manager to act as our agent in renting the place out. Since we now had moved completely out we now rented out the unit we were living in, giving us more than enough to pay the mortgage as well as the agent representing us.

If you are not going to accomany your husband overseas you have a place to stay while he is overseas and he still get quater's allowance

.

You know that you are going to be overseas for at least 3 years, by that time you have more than enough equity to refinance the property so you can get back your GI bill. Refinance it as a non-owner with the least LTV possible, stay close to 60% or less.

If you move back to the same area you can do this again since you have refinanced or you can do this again no matter where in the United States you are assigned.

While in the Army we had 4 moves that we used this method and purchased 4 units each time. By the time we retired we had 12 units with a good income and low loan-to-value. Remember that each time you move you have to refinance to get your GI bill back. We never bought fixers though there were several in the area, but we were too busy partying and having fun. You can do better if after you purchase your units with the GI bill and find other fixers in the mean time.

I hope this has been of some use to you, good luck.

%26quot;FIGHT ON%26quot;

Buying low cost investment properties to rent?

As far as whether or not to buy more and when, after you have the first one, you just have to see how it affects your cashflow.

Remember than any cheap property will be because it has some problem, either it is torn up from bad tennents, or it has a lien or a cracked foundation or something.

You will ALWAYS ALWAYS ALWAYS spend more to fix it than you budgeted for. You just have to determine if its something you can do, or if you can afford to pay to have it done....remember also that the you need to get some people in there ASAP to cover your costs.

I bought a 1950's duplex that needed %26quot;a little work%26quot; and after 18 mos. I finally have both of them rented, but I was spending at least 30-40 hrs a week (on top of my 40 hr job) for the first 6 mos to get this place in decent shape. I was paying two mortgages during this time, but now I have a decent place, and Im grossing about 300 bucks a month on both, and i have equity built in.

Would I do it again? ABSOLUTELY, but maybe in a year or two, but it defintely isnt as easy as those fools on late night tv say it its.