Fear of not being able to rent the house out?
November 24th, 2009 by admin
I have wanted to get into real estate investing for a while now. Im 20, and recently got a job enabling me to do so. My main fear is, ill buy a house, not be able to rent it out, and be stuck with the payments. What are some thoughts on this?
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That is a very real, rational fear to have. So you either have to lowball the rent to attract more possible renters, or offer an incentive, i.e. 1 month free on a 13 month lease.
That is a real concern.
We are renting a townhouse right now. (I live in Houston only until my employment contract is over – so I don’t want to buy anything here).
Our landlord basically “gave” us this place just to get us in. (Over $400 under market price)
He said this place was vacant for over 13 months before we rented it. So, yeah, that is a real problem w/ Real Estate!
I say do it… My cousin is doing the same thing. But she is going to school to learn the laws of do’s and dont’s. But right now there is allot of foreclosures and now is the time to invest if you have the money to do it.
I am impressed with your ambition at your age, you don’t find that much anymore.
You should only do this if you are 90% sure that you would have no trouble making the payments yourself for an extended period of time.
Try starting off investing in a mutual fund that you can contribute to monthly. Set it up so that you contribute the amount you anticipate your monthly payment to be on your investment property every month. If you can do that for a year jump on into real estate and keep the mutual fund going when you have renters.
Just a thought, good luck!!
rent to section 8