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Updated over 5 years ago,
Complete newbie with lots of questions
Hello! I'm Emma. I'm 20 years old, currently not in college but living at my grandparents house. I live at their house because they cant take care of themselves anymore, so they asked me to come live here and take care of them, and their insurance pays me. Its a full time job, I don't have time for college and I'll be here until they're 'gone'. I only make about $800 a month, but every month I try to put away $500 to build up a savings in hopes that in ten years or so I'll be able to buy an apartment complex that I'll be able to fix up and rent out. I know its not many young peoples dream to be a landlord but for some reason its what I want to do with my life more than anything. My fiancee is currently an IT technician in the UK, and the place she works has another location in Los Angeles so right now the 'game plan' is to have her transfer and get a work visa so we're planning to live in LA, but I'm from and currently living in MN. Everythings more expensive in LA so MN is probably where I'd purchase a building. However, upon further investigation, buildings are *really* expensive. I grew up lower lower middle class, we used to take food out of dumpsters and lived in a trailer so asking for help purchasing a building wouldnt be an option. I'm sorry if I'm giving too much information, I just want some advice and feel like its a good idea to give all the details. Because buildings are way more expensive than I thought (2 milllion dollars? really?) I've got many questions about things like bank loans and what I should be doing now for the future. I know it wouldnt even be profitable for at least 20 years either.
So here are my questions. Say I can convince the bank to give me a loan for the amount of money that the building costs minus the amount I've saved up, which I'm estimating at around at least $50,000 over ten years. How much would the bank 'bill' be every month for a 2 million dollar building? Or is a decent building like that in a city completely out of reach for someone like me?
Would it even be possible to make a profit after 20 years? or worth it? I know it wouldnt be profitable so for 20 years it'd just be me basically making no money off it and putting in alot of time and money for the tenants.
What advice would you give a complete newbie like me?
Are there things I should be doing right now that will help me in the long run?
Anything else you'd like to tell me about buying/leasing an apartment building or just what I'm doing in general? I'm saving as much as I can, I pay for my own food and everything so $500 is as much as I can do. I just want to be a landlord one day.
-Emma