Best way to finance rental property? Borrow against other rental prop? New one?
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Date: December 13th, 2017 8:01 AM Author: Nighttime big place of business
My home (50% paid off)
Rental condo - paid in full with tenant in place, worth about $300k
Thinking of acquiring another smaller condo. High COL area.
(http://www.autoadmit.com/thread.php?thread_id=3827301&forum_id=2#34906966) |
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Date: December 13th, 2017 8:50 AM Author: hyperventilating poppy set goyim
Mortgage rates are pretty low, so I think it makes sense to just finance it with a traditional mortgage. If you take a second mortgage or HELOC on the first property you're sort of (though not literally) securing the new, riskier, investment with a stable investment, which seems like a bad idea.
The other option is to find some wealthy friend/family member and have them invest with you. You can cut them in for a pro rata return on profits minus a small management fee, since you're finding and managing the investment.
You'd need to model the two options on a spreadsheet to see which is better. Obvious upside to the second is lower carrying cost on vacant months.
As an aside, how do you like your first condo investment? I'm considering buying a condo as an investment property but everyone seems to think that it's foolish and that you should stick with single family homes. I think maintenance of the common areas and common elements (like roof) are a huge plus. Any advice?
(http://www.autoadmit.com/thread.php?thread_id=3827301&forum_id=2#34907121) |
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Date: December 13th, 2017 12:02 PM Author: Nighttime big place of business
Thank you.
Love it and wouldn't consider buying SF house as investment due to higher taxes, headache of exterior maintenance (landscaping, snow), imho a condo unit is easier and more cost effective if you pick a good condo. My place is really nice, a place I'd want to live and thusfar has attracted nice, non-ghetto tenants tenants. Also building is well run with good preventative maintenance and plenty of $$ in reserve fund. This is very important, but downside is initial investment is higher.
I look for units I'd want to live in, with a "cheerful" feel if that makes sense and with some charm or architectural appeal. Even if they need a bit of work "good bones" good natural light, good location. Must be something special I can feel excited about.
(http://www.autoadmit.com/thread.php?thread_id=3827301&forum_id=2#34908596) |
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