Comments on: Can We Still Make Money Out of Rental Properties? http://www.thefinancialblogger.com/can-we-still-make-money-out-of-rental-properties/ This is where your finance takes place Fri, 19 Mar 2010 14:56:46 +0000 http://wordpress.org/?v=2.9 hourly 1 By: The Financial Blogger http://www.thefinancialblogger.com/can-we-still-make-money-out-of-rental-properties/comment-page-1/#comment-6165 The Financial Blogger Sat, 27 Jun 2009 11:30:01 +0000 http://www.thefinancialblogger.com/?p=1709#comment-6165 DGI, I think you bring a good point by buying REITs. I don't know much about real estate investing (besides that I made a good deal when I purchased my house ;-) ). Sometimes, it is better to stick with what you know. However, I would like to give it a try someday... Jerry, I would says that the biggest risk when you borrow 80% of the value of the property is that rent won't be enough to cover all your fees (including maintenance, insurance, taxes and mortgage payments). Therefore, you will have to disburse money every month... I don't like this scenario too much. I think it is best to buy an asset that will immediately produce income. DGI,
I think you bring a good point by buying REITs. I don’t know much about real estate investing (besides that I made a good deal when I purchased my house ;-) ). Sometimes, it is better to stick with what you know. However, I would like to give it a try someday…

Jerry,
I would says that the biggest risk when you borrow 80% of the value of the property is that rent won’t be enough to cover all your fees (including maintenance, insurance, taxes and mortgage payments). Therefore, you will have to disburse money every month… I don’t like this scenario too much. I think it is best to buy an asset that will immediately produce income.

]]> By: MoneyEnergy http://www.thefinancialblogger.com/can-we-still-make-money-out-of-rental-properties/comment-page-1/#comment-6164 MoneyEnergy Sat, 27 Jun 2009 09:54:20 +0000 http://www.thefinancialblogger.com/?p=1709#comment-6164 I certainly hope we can still be profitable through RE.... I hope to get into that when I can - luckily I'll have plenty of other successful bloggers to talk to for the advice! Oops...forgot to say great post! Looking forward to your next one. I certainly hope we can still be profitable through RE…. I hope to get into that when I can – luckily I’ll have plenty of other successful bloggers to talk to for the advice!
Oops…forgot to say great post! Looking forward to your next one.

]]> By: Michelle http://www.thefinancialblogger.com/can-we-still-make-money-out-of-rental-properties/comment-page-1/#comment-6160 Michelle Fri, 26 Jun 2009 22:33:43 +0000 http://www.thefinancialblogger.com/?p=1709#comment-6160 Rental properties can be very profitable. My parent rented out a big house to college age girls and they're receiving more than enough revenues to pay the mortgage! Rental properties can be very profitable. My parent rented out a big house to college age girls and they’re receiving more than enough revenues to pay the mortgage!

]]> By: MoneyEnergy http://www.thefinancialblogger.com/can-we-still-make-money-out-of-rental-properties/comment-page-1/#comment-6157 MoneyEnergy Fri, 26 Jun 2009 17:30:03 +0000 http://www.thefinancialblogger.com/?p=1709#comment-6157 I certainly hope we can still be profitable through RE.... I hope to get into that when I can - luckily I'll have plenty of other successful bloggers to talk to for the advice! I certainly hope we can still be profitable through RE…. I hope to get into that when I can – luckily I’ll have plenty of other successful bloggers to talk to for the advice!

]]> By: Jerry Hung http://www.thefinancialblogger.com/can-we-still-make-money-out-of-rental-properties/comment-page-1/#comment-6154 Jerry Hung Fri, 26 Jun 2009 14:16:39 +0000 http://www.thefinancialblogger.com/?p=1709#comment-6154 My 2 cents is that Real Estate also gives you the greatest leverage with moderately small risk What other asset can let you borrow to 80% when you only have to put in 20%, and that you are making money, with bank and tenants' money :-) My 2 cents is that Real Estate also gives you the greatest leverage with moderately small risk

What other asset can let you borrow to 80% when you only have to put in 20%, and that you are making money, with bank and tenants’ money :-)

]]> By: Dividend Growth Investor http://www.thefinancialblogger.com/can-we-still-make-money-out-of-rental-properties/comment-page-1/#comment-6152 Dividend Growth Investor Fri, 26 Jun 2009 13:50:02 +0000 http://www.thefinancialblogger.com/?p=1709#comment-6152 I don't know anything about real estate investing. If something breaks, I won't know how to fix it. I would most likely hire some sort of a contractor person that would eat up my whole profit. I am also afraid that my tennants would be methlab entrepreneurs and would eventually burn down the whole place. Diversification is important as well if you ask me - what happens if I buy a rental in a certain place and it goes great for a few years, before your region gradually becomes an unsafe neighbourhood or the major employers in town have to billions in government bailout money. ( Think of Detroit and recent headlines about houses selling for $10K/piece) That's why i simply invest in REITs. It's easy, you get instant geographic diversification, and some REITs even pay you monthly distributions instead of quarterly. I don’t know anything about real estate investing. If something breaks, I won’t know how to fix it. I would most likely hire some sort of a contractor person that would eat up my whole profit. I am also afraid that my tennants would be methlab entrepreneurs and would eventually burn down the whole place. Diversification is important as well if you ask me – what happens if I buy a rental in a certain place and it goes great for a few years, before your region gradually becomes an unsafe neighbourhood or the major employers in town have to billions in government bailout money. ( Think of Detroit and recent headlines about houses selling for $10K/piece)

That’s why i simply invest in REITs. It’s easy, you get instant geographic diversification, and some REITs even pay you monthly distributions instead of quarterly.

]]> By: traineeinvestor http://www.thefinancialblogger.com/can-we-still-make-money-out-of-rental-properties/comment-page-1/#comment-6147 traineeinvestor Fri, 26 Jun 2009 11:23:13 +0000 http://www.thefinancialblogger.com/?p=1709#comment-6147 It has often been said of real estate that you make your money when you buy. Buying in a recession when the consensus of opinion is that property is a poor investment makes a lot more sense than waiting until the market has recovered and every Casey Serin wannabe is bragging about how much money they are making flipping houses instead of working for a living..... It has often been said of real estate that you make your money when you buy. Buying in a recession when the consensus of opinion is that property is a poor investment makes a lot more sense than waiting until the market has recovered and every Casey Serin wannabe is bragging about how much money they are making flipping houses instead of working for a living…..

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