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Old 02-21-2016, 11:24 AM
 
670 posts, read 1,173,197 times
Reputation: 1764

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I think I'll send the OP a private message... :-O

Last edited by Hipchik; 02-21-2016 at 11:42 AM..
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Old 02-28-2016, 04:27 AM
 
Location: We_tside PNW (Columbia Gorge) / CO / SA TX / Thailand
34,730 posts, read 58,079,686 times
Reputation: 46195
SR simple RE investment rule....

Don't buy it....

If you can't get 1% of gross sales price in monthly rents... Or you cannot resell tomorrow for 110% of sales price

I.e. Pay $300k, ? Best be able to rent it tomorrow for $3k or resell for $330k. If not... You are probably looking at negative cash flows. Properties can be hungry monsters to feed.

Retreat / vacation props.?
Go to your chosen area mid week, off season... How many places are rented? How many vacant?
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Old 02-28-2016, 09:28 AM
 
914 posts, read 2,207,503 times
Reputation: 1516
Quote:
Originally Posted by StealthRabbit View Post
SR simple RE investment rule....

Don't buy it....

If you can't get 1% of gross sales price in monthly rents... Or you cannot resell tomorrow for 110% of sales price
It is a worthy goal, and one that has held up through good times and bad. Unfortunately, I haven't seen a property I'd want to own that can do that for at least five years. Which is why I am out of the rental business these days. Currently in Denver a $300,000 condo that will sell 48 hours after going on market will bring less than $2,000/month.

But even when the old 1% rule was operable there were people like the OP who would be satisfied just to have some income to offset the expense of owning a house. That does not make them wrong.
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Old 03-05-2016, 12:19 PM
 
974 posts, read 2,186,513 times
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Quote:
Originally Posted by Arrby View Post
It is a worthy goal, and one that has held up through good times and bad. Unfortunately, I haven't seen a property I'd want to own that can do that for at least five years. Which is why I am out of the rental business these days. Currently in Denver a $300,000 condo that will sell 48 hours after going on market will bring less than $2,000/month.

But even when the old 1% rule was operable there were people like the OP who would be satisfied just to have some income to offset the expense of owning a house. That does not make them wrong.
Arrby has pretty much nailed it as far as our "goals" are regarding having a condo to live in / rent-out when away. Colorado is on our radar but depending on variables it may not be where we wind up. As mentioned earlier, our plan is pre-retirement, work for another 8 or 10 yrs and then go into part-time expatriation with a home-base that could be rented when out of country. As much as I'd like to believe all those HGTV Home shows where couples buy attractive 2nd homes in vacay destinations that pay for themselves, I'm realistic enough to know that is a tough thing to achieve.

But thanks to all for the insights, I value the intel and insights.
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