real estate: how are people able to buy property and rent it out to others?
My uncle makes money by charging people rent for living in his duplex
how would one go about doing that? what about in another state or country?
please give me a lot of ideas or website links for more
like if I wanted to buy property and make money renting it out to people in Miami
what should I know about this or real estate in general? I just turned 18
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Tags: Money, Rent, Wanted To Buy
buy property | , 4 Apr 10
By crashosborne2003, April 4, 2010 @ 9:01 pm
Ask your Uncle! Maybe he will let you in on his secrets!
By G.L.P., April 8, 2010 @ 8:34 am
Well, 1 good idea after your purchase the property is to good a homeowners association or something of the sort to keep it in tip top shape for you and take care of the maintenance. That’s normally good if you’re not going to be near the rental property.
By JULIE A V, April 8, 2010 @ 9:23 am
First of all, you have to be in a position to buy a house. The best way to start is to buy a duplex and live in one half and rent out the other, that essentially makes home ownership a little more affordable. Unless you happen to have a lot of capitol to work with right a way, it will take you time(and a good job) to be able to accumulate more properties. Single family properties are the hardest to generate cash flow, though it can be done if you get one at a good enough price. The more units in a property, the more potential cashflow – but also the more headaches. Just remember, being a landlord is not always a walk in the park. Even if you are a decent person and try to be fair, you will quickly become the “bad guy” in a tenant eyes when they are not completely happy. I agree with the other posters that you will need other people around you that have experience. I would also not recommend owning property too far away from you. You need to be able to handle it personally if you want to make any money. If you have to hire managers etc. that will eat into the profits.
By crystaldiamond, April 11, 2010 @ 5:43 am
they get a house and make money off it by renting to others.
By shooting_star, April 13, 2010 @ 5:38 pm
This is the technically known as Buy and Hold Strategy.
I understand better with examples, so I will go with this strategy.
Say you purchased a house with $350,000 at an interest rate of 5%. Your weekly repayment is $336.53. If you could rent it out at say $300 dollars, you are just having this property for only $36.53 pwk.
The greater benefit is:
i)Short term – you can claim tax back on your loss
ii)Long term – You get the capital gain ride. Visit to see the fun in capital gain.
One word of caution:
You will have to be ready for facts like rental management, home repair and some bolt from blue and tenants from hell. That’s why I recommend Buy at least 10 properties so that the money really works for you.