I'm considering the idea of taking equity out of our home to buy a 4-unit apartment building. Are there any realestate investors here that have purchased an investment property? I have a few questions. Thanks. CardKid
Cardkid, I have real estate investment questions too. We own some land and would like to build townhomes to rent out. We have no idea about the financing particulars and have tons of questions.
Absolutely! What a (w)ealthy source of information. In my case, I should take out an equity loan, purchase the building (it's fully rented), then refinance at the appraised value for a 19k profit. The mortgage will be paid from the rental income. It also work's out to be a $466 positive cash flow per month. This sounds too easy. I must be missing something. CardKid
Don't forget about any repairs that become nessesary. I have a few properties and have been lucky because so far I have been able to do all the repairs myself. If I had to pay someone else, I would have been losing money. eg: the broke toilet and cost me 2 hours labour ( including the time it took to get to the store and pick it up ) and $150 for parts. The plumbing place wanted $500+ to do it. It cost me $19 for a new thermostat or over $130 if I would have had to pay someone else. You may already know this but, with my banks at least, you need a higher % down for an investment prop. than with your own home. Our was 25% for the rental units VS 5% for our home.
