Hello BP community!
I am finally going to make the move to start my journey of getting out of the rat race. I have come up with a plan to start investing in rental properties. My goal is 2 per year for the next 10 years. It won't make me rich but it may allow me to work a little less.
My first question:
Investing in my first property, I was planning on using some savings to put about 25% down on a condo in my area, for 100k. But then a banker today told me to refinance my home and take it out of the equity. I have about 200k equity in my house so taking out 25K is not too much, and my mortgage payments would not go up too much. Anyone see the downside of this vs. just taking the 25k from savings?
Second question:
I'm trying to calculate cash flow from rent, and I'm wondering how hard is it to manage properties to start. I have been calculating it using property managers, using a 10% expense plus first months rent, however, I'm wondering if this is something I can just do myself. Again I'm brand new to this. I figure if I screen my tenants well, it shouldn't be too hard to get rent and I'm looking at properties that are upgraded.
I'm sure you are wondering where this is. I live in Parkland, FL and I'm looking at condos and apartments in Coral Springs, FL.
Thanx in advance!
