i have an IRA that i’m looking to invest into some rental property. typically i like to abide by the “invest in your backyard” mentality for landlording but here in NJ homes are pretty expensive in most areas that aren’t war zones.
some of the key factors would be to invest in a state that is landlord friendly, short foreclosure timeline (for properties acquired via nonperforming notes), cheap to obtain. i’m sure there are many more factors to consider.
on that note, would anyone like to share some info? perhaps maybe even a course that covers what i’m looking for?
All 50 states are good to invest in. The one you are in is the best for you because you can know your market for comparable’s and which areas are up and coming. In my market we can buy nice houses with little fix up for less than 30k some as low as 5k. I search hard for the ones I buy and i repeat that deals are made and not found. That means that you have to make the deals in your area, based on your area, they do not come labeled. Go to your landlord Assoc and talk to the older people that want to retire and you can make some fantastic deals. I have one now that I would sell that is a 7 unit that would conform to the 2% rule if you are interested.
Redhawk
granted all 50 states are good to invest in, however, not all of these are landlord friendly states. furthermore, my ira can go a lot further in other states then it could here in nj. you mentioned you could purchase some homes for $5k in your state…that is something i’m looking for. a $5k house in nj is most likely in the heart of a war zone you wouldn’t drive a shielded tank through.
Texas is awesome! Property values are cheap, and it’s quick & easy to evict someone. However I can’t emphasize enough - unless you have a large commercial property - try to stay close to your home (within 10 miles if possible) if you have single family rentals. There will be times you need to visit your properties, and having them close makes a big difference.
I do believe that you can earn a larger return over time, by lending the funds from your IRA for another investor to purchase. As the investor returns the funds your principal balance on the next loan grows, thereby compounding the interest calculations.
You can also see how where others invest, what they invest in, what tools, etc they use. You set the rate and term, so you are comfortable.
As to 5k houses, I can buy some here, but I tend to stay with the ones closer to 10k.