Hello!
I have come across this site this morning. I am 47 years old, and I will pay off my house in March. Once I no longer have a mortgage in my primary residence, I am thinking investing in real estate could be a good investment for my retirement in 20 years. I would like to own several rental properties in 20 years if possible.
I won't that have much left after I send the last payment to my house in March; however, I will have my current mortgage payment to save each month. I should be able to save at least 20% down payment for a rental property in less than a year.
I tried real estate investing once a few years ago. I failed. It was my fault. Here's what I did:
I didn't have enough down payment. The monthly rent was only enough to cover the mortgage with nothing left to handle repairs, vacancies, etc. I had no savings.
I accepted the first tenant who showed up. Ouch. I didn't check their background, credit, nothing. I didn't even know if the man was employed.
One month, when the rental check didn't come in, I tried to call the tenants. Their phone had been disconnected, so I drove to the house and knocked at the door. No answer, it looked like the house was empty!? So I asked one of their neighbors who told me my tenants had actually picked up their stuff and moved away days earlier.
I had no contract with them. I had no deposit, no last month, nothing. The mortgage was due in just a few days, and I had no money.
That was my only experience with real estate. It was a stupid mistake. I paid 100% of the asking price, and they were asking market value. It was a bad investment in every way.
Today, several years later, and knowing well what mistakes I made, I am willing to reconsider real estate as an investment vehicle. I will try to join some real estate investment club in my area, and I plan on getting a real estate license too.
My first question is this: What kind of POSITIVE CASHFLOW would be acceptable? Is there a rule of thumb? Any advice would be truly appreciated.
Thanks!
CharlieBoy.
:D
