Questions from a beginning Investor

You should start with a single property to build your experience. And your small investment for the property can be collateral for another property later.

 

Just a thought, have you perhaps considered investing in REITs?...am gathering advice from all around in that regard and what am getting is awesome news, you don't need to have a headache of building and renting or selling, you just invest online and wait in for the bait {i stand to be corrected} but its sounds much easier and less stressful...am soon going that way, very soon

 

I think the main thing to take away is to start small and slow, don't bite off more than you can chew.
Get a house in adequate condition in the best neighborhood you can reasonably afford.

 

I agree that starting slow is wise, but if we see a good opportunity and we have the capital we should go for it.

 

I'd advice going for investing in houses for low-income earners. You may not earn enough from those houses to be wealthy but at least you'll have tenants all the time because as more people lose their jobs they'll prefer to live in cheap places. The one issue you may have with investing in property you'll rent to middle-income earners is that the property costs more and should the tenants fail to pay their rent, you'll be losing a lot more. Better buy many, cheap houses which would guarantee some income because even if some of the tenants default on rent payment most of them will PAY.

 

That's a good but difficult question. Both have their advantages and disadvantages. I think the best choice should be based on your experiences and finances.

If you have more than enough money to invest in a median-income home, you should do it. 1) it will allow you to avoid the problems that come with renting in poor neighborhoods. 2) you will have enough money to tide you over in case you face a few months unable to rent your property out.

 

I believe that renting out property can be fun as well as headache at certain point of time. It all depends on the kind of house you are looking for in the area. I believe that house should have moderate rent and quite big size.

 

It's a business shilpa, so I am not really sure if fun enters in the equation, but sure that it brings some headaches, but the income that it provides compensates for all that.

 

I have to agree that renting out property can be a headache. That's why it's advisable to let someone manage your investment for you. You'll have to share some of the money you earn with them but at least you avoid all the problems that come with being a landlord: collecting rent [from bad tenants], making tenants pay for things they've broken, etc, etc.

 

You should start with a single property to build your experience. Start with a small cheap house in order to attract lower middle class tenants. 100% occupation over the year is better than 20% occupation on end-game real estates.