All Forum Posts by: Joe Noble

Hi Guys

An interesting scenario:
I am currently renting a nice house from a family member (i.e. using it as my home) for only £200/month (it would normally fetch £600-£700 per month on the open market).

What I wonder is, should I:
1. continue to rent it for quite cheap money and focus on building a property portfolio of rental property. i.e. invest the money saved from purchasing a property for myself to live in, in rental properties (i.e. rent out to tenants) and continue renting my own residence also at £200/month.
2. Purchase my own property to live in and pay approximately £400/month to live in a lesser quality house but at least the monthly mortgage payment for living in my own property are to pay for my own house, rather than £200 going to a family member (however this may also mean less money for me to invest in a rental property portfolio, which I plan to build up over time).

Not sure what is the best way forward starting out. I would have thought may be best to purchase my own residence and then focus on building a rental portfolio after this has been done but seeing as I am getting such cheap rent and such a good house, I wonder if I should save my deposit money and forget about purchasing my own residence to live in and instead just straight way start building a portfolio of rental properties with a view to rent my own residence currently and perhaps purchase a house for myself in maybe 5 years down the line or so.

Any thoughts? Can anyone help or offer some advice?

Thanks

Wow those are serious rentals you're getting for the initial outlay. To spend equivalently in the UK, it appears we'd do well to get one unit for the same outlay i.e. $950 for a $150,000 spend equivalent in £, rather than $2950. If a property can pay for itself in just over approximately 3 years, why don't the people who rent buy?

There's slim to nil chance of seeing deals even close to that in the UK (unless I'm completely blind to them)... maybe I should move to Chicago...

Hi Russell,

Can you please inform me how you manage to get $1000+ monthly cashflow on a 3 unit? i.e. how you went about finding the deal and the calculations you used to compute your cashflow.

It doesn't have to be exact figures but an example breakdown of the numbers would be really nice. You can pm me if you prefer not to openly discuss numbers. I'd be really interested to hear the technique/strategy you employed.

and by the way, well done... your success has been excellent and inspiring.

Thanks