First Rental Questions"
I am still in the processs of gaining real estate knowledge through books and web sites and such but right now it seems like the best bet for me right now is to just dive in somewhat safely to gain experience. I am planning on buying a relatively low priced (~100k) property that with the numbers worked out maintains a comfortable cashflow. In my area (Westchester county, suburban NYC) the only types of properties in that price range are low income condos. Would you reccomend a condo as a first purchase? I could however venture out further north of the city and find houses in that range and in that case i am thinking it would be wise to use a propery manager considering i will no longer be close, but even better cash flow would be needed to afford one (~10% of rent usually?). Which option do you suggest as a first purchase? How many of you use property managers and maintain positive cashflow?
PS: Can anyone perhaps in the NY area tell me a good place/software to look for comps and rental comps? Right now my only tool is realtordotcom
Your input appreciated.
[ Edited by sm-4 on Date 07/13/2005 ][ Edited by sm-4 on Date 07/13/2005 ]
I have done the same thing for my first investments. I was a little worried so I invested in homes under 50k knowing that if they didnt rent out soon the mortgage payment was so low that I could pay it myself. Single family homes that are at least 3 bedrooms are typically the easiest things to keep rented. I had to go to a lower income area to do this, but so far it has worked out fine and it looks like I am getting long term tennants that take care of the place. I would say a very good property manager is the key. I have heard of a lot of bad ones so be careful. I cant say if condos are a good investment. I would suggest talking with a good property manager and asking them what is in demand. What are people asking for when they call them to rent? In VA where I invest they had a big article about apartment complexes being over built and a lot of vacancies, so I stay away from those. talk with people in your area and see what they say. good luck.