Today I tackle 4 real estate questions that come from the listeners.
Chris, age 25, says:
Over the next 30 years, I’d like to acquire 15 rental properties. Then, at age 55, my wife and I can retire and travel.
To begin, I’d like to buy a duplex, live in one unit and rent the other on Airbnb. Once I gain some equity and save enough for another downpayment, I’d like to purchase another duplex, move in, and repeat this process.
However, I’m reluctant to get started for one reason.
There’s a decent chance that I’ll need to move out-of-state within about a year or two. I don’t want to be an out-of-town Airbnb host. Should I follow this plan, even though there’s a good chance I might move away soon?
The next caller, who remains anonymous, says:
I love your rental property income reports; they give me a great understanding of your numbers.
But you have economies of scale on your side. Your payments to your accountant, attorney, bookkeeping software, etc., are spread out across 7 rental units.
When I start investing, I’ll only have one unit.
How well would your worst-performing property fare if it was your only property, and you had no other economies of scale?
The third caller, “Anonymous from Orlando,” says:
I own my house free-and-clear, and I’d like to buy another one. Should I take out a conventional mortgage on my second home? Should I cash-out refinance the equity in my first home? Or should I open a HELOC?
Finally, our last caller asks:
I’m interested in rental property investing, but I don’t want to deal with any hassles. Should I use a turnkey company?
Tune in to find out the answers!
– Paula
P.S. Need software to manage your rental properties? Collect applications, screen tenants, and collect rent online with Cozy.co/Paula.
P.P.S. – Airbnb makes it easy to put your extra space to work for you. Become a host today, and you can start boosting your income!
Resources Mentioned:
- How to Calculate Cap Rate – Afford Anything article
- House #4 Renovation – Afford Anything article
- How to Start a Blog in 5 Minutes
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