Today I tackle 4 real estate questions that come from the listeners.
Chris, age 25, says:
Over the next 30 years, I’d like to acquire 15 rental properties. Then, at age 55, my wife and I can retire and travel.
To begin, I’d like to buy a duplex, live in one unit and rent the other on Airbnb. Once I gain some equity and save enough for another downpayment, I’d like to purchase another duplex, move in, and repeat this process.
However, I’m reluctant to get started for one reason.
There’s a decent chance that I’ll need to move out-of-state within about a year or two. I don’t want to be an out-of-town Airbnb host. Should I follow this plan, even though there’s a good chance I might move away soon?
The next caller, who remains anonymous, says:
I love your rental property income reports; they give me a great understanding of your numbers.
But you have economies of scale on your side. Your payments to your accountant, attorney, bookkeeping software, etc., are spread out across 7 rental units.
When I start investing, I’ll only have one unit.
How well would your worst-performing property fare if it was your *only* property, and you had no other economies of scale?
The third caller, “Anonymous from Orlando,” says:
I own my house free-and-clear, and I’d like to buy another one. Should I take out a conventional mortgage on my second home? Should I cash-out refinance the equity in my first home? Or should I open a HELOC?
Finally, our last caller asks:
I’m interested in rental property investing, but I don’t want to deal with any hassles. Should I use a turnkey company?
Tune in to find out the answers!
- How to Calculate Cap Rate – Afford Anything article
- House #4 Renovation – Afford Anything article
- How to Start a Blog in 5 Minutes
Thanks to our sponsor, Credit Sesame!
Regardless of whether or not you’re carrying any debt, maintaining healthy credit is important if you want to buy houses (residential or investment properties). So if you want to check your credit score for free, plus get personalized tips about managing your finances, check out Credit Sesame.
This website is absolutely free. You don’t need to present any payment information to create an account. As a bonus, with your membership, you also get free identity theft insurance worth up to $50,000.
It’s great to know what your credit score is and to get educational content on how to improve it, so check them out!