Mortgage?

[FrostByteParticipant 19005]

Save all your money for dating and dinner whores.

If you rescue a damsel in distress, all you will get is a distressed damsel.

[MarketWatcherParticipant]

Nomadg wrote:

. It is a lot of hassle and a colossal pain in the ass to be a land lord

This has been my experience. I went through three kitchen faucets with one tenant alone. It’s like she was intentionally destroying things.

[Secret Agent MGTOWParticipant 22510]

Russky2 wrote:

Hey fellas.

Again, thanks so much for responses. I am considering what you all have said. Secret agent has had some good points. I do want to look at it from a realist POV. Always considering negatives.

Anyway the house is 40 years old. They want 130K for it, could possibly negotiate. House is in province of New Brunswick, while I’m from Ontario. But I’ve been looking to make money in any way possible to escape plantation. Here’s the link
https://www.kijiji.ca/v-house-for-sale/moncton/20-danforth-st-moncton-new-brunswick/1335680240?enableSearchNavigationFlag=true

40 years old means it will need work, possibly lots. Prior owners may have done some fixes that are not code and/or very dangerous that you may not find because they hid them in walls and such. Ive seen how many canadian houses are built on property brothers. But any way you slice it 40 years old means outdated inside, roof problems, electrical issues, plumbing, foundation/footings issues.

Women want everything, but want responsibility and accountability for nothing.

[black_knightParticipant 2602]

MarketWatcher wrote:

I went through three kitchen faucets with one tenant alone. It’s like she was intentionally destroying things.

Problem identified, lol.

[TheSpiceParticipant 2644]

I would strongly recommend avoiding a home purchase right now. Most markets are extremely overbought and you’ll be looking at a very slim capitalization rate for a fairly risky venture, imo.

"I've been thinking about what it would be like if we got back together."
"You know it's too late for that."

[DarkRyuParticipant 2354]

As someone that owns rental properties, I can tell you that it is NOT worth the hassle unless you can cashflow at LEAST $400/month from a property. In my experience, in order to have $400+/month in cashflow, you need to spend a minimum of $250,000 on the house. I’m sure there are exceptions to this, but renting out a house with a $110,000 mortgage for $800/month just isn’t going to cut it. You’d need to rent it out for at least $1,200 in order to cashflow $400/month.

Here in the US at least, you can NOT put less than 20% down on an investment property. Investment property also has a much higher interest rate (it’s at about 5.5% right now). I also wouldn’t touch a 40 year old house unless I got it for at LEAST 30% under market value and could put at least $40,000 into it to fix it up. I don’t care if it looks just fine. At 40 years old, it’s going to have issues.

If you want to get into investment properties, you MUST have a financial cushion. S~~~ happens, and you can quickly bankrupt yourself and lose your house if you’re not prepared.

[Secret Agent MGTOWParticipant 22510]

DarkRyu wrote:

As someone that owns rental properties, I can tell you that it is NOT worth the hassle unless you can cashflow at LEAST $400/month from a property. In my experience, in order to have $400+/month in cashflow, you need to spend a minimum of $250,000 on the house. I’m sure there are exceptions to this, but renting out a house with a $110,000 mortgage for $800/month just isn’t going to cut it. You’d need to rent it out for at least $1,200 in order to cashflow $400/month.

Here in the US at least, you can NOT put less than 20% down on an investment property. Investment property also has a much higher interest rate (it’s at about 5.5% right now). I also wouldn’t touch a 40 year old house unless I got it for at LEAST 30% under market value and could put at least $40,000 into it to fix it up. I don’t care if it looks just fine. At 40 years old, it’s going to have issues.

If you want to get into investment properties, you MUST have a financial cushion. S~~~ happens, and you can quickly bankrupt yourself and lose your house if you’re not prepared.

To paraphrase a show I like:

“Here’s what you tell someone who wants to know what its like to be a property owning landlord with a mortgage: Stand under a cold shower, and tear up hundred dollar bills.”

Women want everything, but want responsibility and accountability for nothing.

[draconic1Participant 89]

If your goal is to get off the plantation this situation you describe will not accelerate, though if this is an industry you wish to enter it will be an expensive, painful introduction to get off your feet. From what you’re describing I’d recommend investing aggressively for now and meeting some people who are doing this, talking it over face to face, I have never heard anyone say being a landlord is pleasant. My father tried it and a real piece of work claimed there was mold and it had harmed his young daughter, the guy wanted to be put up in a resort for the rest of the lease. My father had to shell out $10s of thousands to bring in a testing team and represent himself in court. There are decent renters out there then there are the ones who destroy your place and run you through the mud, impossible to tell who’s who based on credit report and short interview and even if you know the person is a sleazebag if you deny them they can sue you for discrimination. Check the local code too, I live near a city where it is illegal to deny rent to section 8 families. Lots of research to be done, when you buy a house you are marrying the land and if she comes with debt it can go very sour very quickly.

[Author]

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