real estate is a FAR better bet than stocks

[prison/con.net]

but you need certain conditions to make it so. You need 20k, you need to know a veteran who has not yet used his VA home loan, you need an area where the codes do not prevent your renting out rooms by the week, on a 'sober living" contract (ie, evict tenants at will, they have no recourse) You want as close to 'interest only' type of mortgage as you can get. You want to be able to just walk away, with little regret. You need massive amounts of tort insurance. You need a powerful personality, so that your scum tenants don't want to mess with you. You need discernment, so as to (mostly) weed out the scum in the first place. you need to know that a GI loan saves you 25k of downpayment and closing costs (on a 100k house). You need to live there and manage the place for the first year.

 

[Delta4Embassy]

but you need certain conditions to make it so. You need 20k, you need to know a veteran who has not yet used his VA home loan, you need an area where the codes do not prevent your renting out rooms by the week, on a 'sober living" contract (ie, evict tenants at will, they have no recourse) You want as close to 'interest only' type of mortgage as you can get. You want to be able to just walk away, with little regret. You need massive amounts of tort insurance. You need a powerful personality, so that your scum tenants don't want to mess with you. You need discernment, so as to (mostly) weed out the scum in the first place. you need to know that a GI loan saves you 25k of downpayment and closing costs (on a 100k house). You need to live there and manage the place for the first year.

If you only have 20k you're better off buying an issue or basket of issues. Real Estate's swell if you have hundred of thousands to buy into a high-desire location and market. If not and you're buying a slum somewhere, you're gonna lose your principal more likely than make any profit.

 

[Moonglow]

In my area shotgun shacks are renting for 800 a month because of the housing shortage..I am flippin' one now...

 

[mamooth]

VA loan? Why?

The VA sucks for loans. I started going through their hoops to get one. After being employed steadily for years, the VA didn't like that I had a past gap in employment history for 6 months. They literally told me to make up some kind of lie to cover up that gap.

I immediately walked over to a private lender, and got the loan that day for half a point less.

 

[william the wie]

1) Buildings depreciate, land appreciates
2) Tree farms, farmland and storage centers are where the big money is made. (See rule 1).
3) A major reason why the big three make money is that leverage is low.

 

[prison/con.net]

VA loan cause you don't have to have the 20 % down payment. and you also don't have to pay the 6k or so of closing costs. Now, maybe saving 26k means nothing to you, but it means a LOT to most folks!

 

[prison/con.net]

maybe YOU don't know how to make 30%, every year, on a real estate investment of only 20k, but EYE do, and that's after i no longer physically manage the place. When I did that, the ROI was 60% per year. you have to be a really hard-nosed tenant manager to do it, tho.

 

[Jomama]

So why that market of rentals? Why not do it with more stable renters and not have to live on premise (that was your point, correct?). I get all the leverage but not sure on your market.

 

[SharpArrowhead]

It is if you're willing to do the work and a whole host of conditions are met like the ones you outlined. I find though investing in index funds is a hassle free way to grow your wealth. I think if you focus on building a business/maximizing your career and invest the money in index funds, you can do all right.