Just another one new to the REI market and this website. Like many newbies I have questions about the whole REI process. I’m currently looking at duplexes in the SEATTLE area (you won’t believe how $ 400,000 does not get you far), but haven’t made any offers yet. I’ve never owned a home before, but want to start investing by living in one side of the house and renting the other. So far, I have seen a few that I like and they seem to have tons of appreciation potential…and that are in my price braket.
I have tried to educate myself on this subject by reading books on REI and talked to some people in the business. But I still feel kind of overwhelmed by it all. My long term goal is to eventually work in my job as a hobbie. My current job is really flexible and pays well. I can arrange to have months and months off at a time if I choose to. But I’m so tired of working for somebody else so I decided to invest for myself and learn as much of this business as it’s possible. But it can be so overwhelming when you are so new…am I being silly by feeling this way??? I have never invested $ 400,000 before and it’s a little frightening. Any advice or comments are really welcome at this point.
Hi! Its interesting when I hear about the real estate market in other parts of the country. Investing with 400k in my market, southside chicago in rehabs, flips, and wholesaling will make you a millionaire in a year, but in your market that kind of money barely makes a dent! Because you have a very flexible job schedule, you may want to consider investing out-of -state. I have been a rei since 1998.
I'm currently looking at duplexes in the SEATTLE area (you won't believe how $ 400,000 does not get you far
Actually I would
I live in Vegas and go to Seattle often and have also shopped homes in the OC. I bet many here are the same way. It is funny to talk to people in those areas (like Ohio) where sub 50k and sub 100k props are common.
Be careful out there. I looked a duplex in Tacoma in the 150k-200k range. The problem is the price to rent ratio. Unless you have a very hefty down, the property is a negative cash flow machine.
I guess a 400k investment could be scary to a first timer. After that, you should be fine. For those of us on the west coast, these types of numbers are common place.
Have you considered an option arm where you can make interest only or min payments for the first few years and every month the payment will adjust to the new balance. It really is a matter of your income. Good Luck.
What are the rents like in your area? Also factor in taxes and other fees such as water and sewer bills. Since you never owned a home before have you ever fixed things before? Like replacing a faucet, toilet, light switch, Outlet, railing, painting, tile and stuff like that? Just normal maintenance that most home owners have to do. Unless they hire it done for a premium. Also you want to consider that since you are living there, you may end up with a 100% vacancy at one time or another. I know some people who are owner occupants, they have a duplex and they enjoy getting a rent check everymonth. Just make sure the fundamentals are in place before you jump in.
