Need some help please...

General Real Estate Investing
1

How is everyone doing? I have some very basic real estate questions for all of you. For the past few months now I have been thinking of investing in some real estate property. The areas I am very interested in is the Myrtle Beach area because of the increasing population growth. Well anyways let me get into my situation for you. I am currently graduating college with little debt to payback thankfully. I acutally was also lucky enough to make a few thousand dollars in savings in the past (est. around 17,000). I was toying with the of moving to myrtle beach and purcahsing a condo that will hopefully grow in value thourgh out time. Currently I have two realiable roommates that would be willing to sign a lease and move into this condo with me. With them paying rent and myself also paying it should easily help pay the mortgage for the first year or so. (or atleast as long as we all live there) I would like to purcahse a propertly that I could currently live in for a few years with roommates then eventually pick up propertys as I go along. I could end up selling my first purschase or even use it as collateral to collect more propertys. Does anybody have any advice or think this is a poor/good idea. Please let me konw. Thanks for your time.

BM

2

Howdy Mcnutt:

I would love to come and visit this summer when you get the condo. I used to hang out there for a few summers back in the 70’s when in college and high school. I like the fact you are young and wanting to start investing. Condos can be hard to invest in, especially with the HOA dues. Some duplexes may be better as cash flow investments and you may even be able to live free with the rent from one side, except for maintenance.

It will take years to appreciate to the point where you can borrow against the equity unless you get great deals and rehab and refinance.

3

McNutt,

From what I have seen typical REI investors unless specialized in condos stay away from them. Their value is based on many other factors that differ from … umm… NON multiple dwelling units?

I agree a duplex might be a better first try or even a larger house for 4 guys to get along in.

Oh yeah and to get another take on condos call up an agent in the area you are looking at and ask them how long most condos of the type/size/location you are looking at stay on the market until sold vs. a similar single family home (SFH). I believe condos unless HOT or fashionable take a lot longer to sell.