Investment advice: buy rental property?

[Atfulldraw]

This is worth considering. Paying the taxes every year would be a drain, but it might be worth it to just get to enjoy the property.

for ag land, the taxes are hardly noticeable.

in my area, you are looking at less than $200 for a 200k piece of land.

[Epack]

couple duplexes in a nice area would net you a decent return. rent in the greater Austin/round rock area for a 3/2 duplex is between 1150-1300 per unit... could bring a nice return. not sure where your looking though.

[Slew]

You could look at short sales, foreclosures, or subject too as well. Couple maybe get a couple houses like that with 200k. Course I'm not in Houston. Stuff there's high. I want mobile homes myself.

[csmith936]

This is worth considering. Paying the taxes every year would be a drain, but it might be worth it to just get to enjoy the property.

I have 23.5 acres of raw land and my taxes for this year were about $40

In my area I believe they tax you $100/ac for pasture $250/ac mixed timber and $300/ac for pine!

[LWD]

I'm not in Houston but in the north east tarrant county area I would be looking at buying rent houses. The demand is incredible right now. Just don't overpay and you'll be good long term.

LWD

[friscopaint]

I'm not in Houston but in the north east tarrant county area I would be looking at buying rent houses. The demand is incredible right now. Just don't overpay and you'll be good long term.

LWD

Not that I want to be in the market but there are a lot of great "possible" rental properties where you are talking about in N. Tarrant. I work in Sendera Ranch area (Alliance) and lots of foreclosures in the $90-$100k in a pretty decent area. Also a lot on south side of western center west of I35.

[Gbird]

I would avoid Houston and go to a college town like College Station or Austin. My wife is in real estate here and a good duplex never is empty. You could rent the bedrooms individually and make $400/room/month easy. If you're in the right part of town, you could fetch $600/room.

[kmlj9491]

Seriously, I'd buy land with it. Raw land and a tractor...improve it, hunt it, and sell it when ya need to.

It's a safe investment and you can enjoy it.

This right here. I wouldn't invest is a company right now unless it is one that is already on its feet with returning customers. Renting homes can be hit or miss. Then you have maintaince, people who don't pay on time, etc. One thing is for certian, no matter how much someone tries, they will never make more land. 200k will get you a good size place or would be a heck of a down payment for a big place. Buy somewhere just outside a big city limit and sit on it for 20 years. It will probably be worth 10x more than it is now. Think between conroe and huntsville or between college station and navasota or between waller and cypress. Or somewhere similar. Those places are blowing up big time. A lot of farm land turning commercial. Land is the best investment anyone can make.

[rferg84]

This sounds fun and interesting, but I sure don't think that I could swing the note on the 2m property.

You wouldn't, tenants would.

Read "two years to a million in real estate".

An apartment compleat could make you some nice money.

[flatlander]

Take rfergs advice, let a bank multiply your money for you.

And if you get good at it, and have enough property to gain the interest of the real estate companies with big money they will buy out your development and you move on to the next with a big pocket full of cash. Just figure out what they want in a property, build and run it accordingly, and when it's big enough it's theirs, and the cash is yours.

[35remington]

There are people in here suggesting you use your cash (congrats on working hard and saving in order to have that to invest, by the way) to go BACK INTO DEBT. Wow.

I think your plan of a rental house is good. If $200k doesn't buy you the rental you want, save a little longer until you have what you need to pay cash for that rental property. If you can, keep it reasonably close to your stomping grounds in order to keep an eye on it.

[Captain39]

Got to love advise on here from people who don't own property or rent houses.

[flatlander]

There are people in here suggesting you use your cash (congrats on working hard and saving in order to have that to invest, by the way) to go BACK INTO DEBT. Wow.

I think your plan of a rental house is good. If $200k doesn't buy you the rental you want, save a little longer until you have what you need to pay cash for that rental property. If you can, keep it reasonably close to your stomping grounds in order to keep an eye on it.

^^^Thats how you turn a little into a lot.

If you want to turn a little into a little more, your way works great.

What's the best outcome your way? A 5% turn for twenty years! maybe? $550-560k.

My way $200k becomes a $2mm property, that appreciates at the same 5%, while making a LOT more rental income, AND there is a big payday at the end.

Wost outcome either way is the original $200k is gone and you have a bad mark on your credit the size of Brewster County.

I'm going big on my end, debt doesn't bother me when I can make 25-30% on the money I'm paying 4-6% for at the bank.

[Sparkles]

Have you looked for something that could be a vacation rental?

[35remington]

Investment advice: buy rental property?

^^^Thats how you turn a little into a lot.



If you want to turn a little into a little more, your way works great.



What's the best outcome your way? A 5% turn for twenty years! maybe? $550-560k.



My way $200k becomes a $2mm property, that appreciates at the same 5%, while making a LOT more rental income, AND there is a big payday at the end.



Wost outcome either way is the original $200k is gone and you have a bad mark on your credit the size of Brewster County.



I'm going big on my end, debt doesn't bother me when I can make 25-30% on the money I'm paying 4-6% for at the bank.

You forgot the part where life happens and he's not able to make the mortgage payments on the $2 million house. Dude already said he doesn't think he can swing payments that big.

If it were my money, I would be willing to except a lower possible return and exchange for an extreme reduction in risk. Kind of hard to have a foreclosure on a house with no mortgage.

My investing strategy is conservative; I'm well aware of that. Ringshooter, you're going to have to decide how risky you're feeling.