This week, I’ve devoted a special episode of Ask Paula to answering questions about real estate investing.
Our first question comes from Ade, who has $25,000 to invest in real estate and lives in the Bay Area. Understandably, he’s thinking of investing out-of-state, and wants to know if Atlanta is still a good city to invest in. Where can the best deals be found?
Krystina lives and has four rentals in Vermont, but she’s sick of the cold. She’s thinking of selling the properties and moving elsewhere. She asks: if you had to start over, where would you buy and what type of property would you buy?
The next question comes from Kayla, who wants to know how to report rental income on your taxes when you also live in the property. Are there any tax implications to be aware of?
Claire is relocating to California, and is curious to know if she’s better off renting, or if she should max out her mortgage loan potential and buy a house that has a detached garage she can rent out to cover the increased mortgage.
Our next question comes from a listener with a paid-off rental who also has an Airbnb on her property. Nice! But, she has a $160,000 mortgage on her own house. She has $30,000 in the bank and wants to know: should she put it toward her mortgage, or use it to buy another property?
Our last question comes from Katie, who’s eyeing a vacation rental in one of her favorite destinations. Does it sound like a good idea? And how can she estimate the cap rate (and her expenses) without a ton of information on the property?
We dive into these topics – and more – in today’s episode. Enjoy!
P.S. Got a question for a future Ask Paula episode? Leave it here!
Resources Mentioned:
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Sonia
Hi Paula – I stumbled onto your site a few weeks ago, and I’ve been bingeing on podcasts and blogs ever since. Thanks so much for the inspiration, information, and laughs. #technicallyafruit
I’m looking forward to your real estate course when it’s ready, and I really appreciate the hard work you put into helping people escape our cubicles!
Sonia
Krystina Lankone
Hi Paula! Thanks for answering my question on your podcast 🙂 Definitely something to consider, as I’ve pretty much always just bought what I would want to live in. Kinda with the back-up plan of “well, if this doesn’t work out, we can just live there…” mentality. Maybe its time to take myself seriously as an investor and TRUST that the next ones will work, because I’ve run the numbers. woosh, thats a biggie, even saying that.
Jim
How much 4 re course?
Jeff
Podcast was great!
Rose Weinberg
Hi Paula,
just came across this episode but I don’t see the link on how to calculate the cap rate you mentioned. has it been deleted or else?
I’d love to have this document.
Cheers
Rose
Erin @ Team Afford Anything
Hi Rose – it’s been a while, so I’m not 100% sure if this was what Paula was referring to, but we generally send everyone to this article on the site for calculating cap rate: https://affordanything.com/cap-rate/
Hope it’s helpful!