http://www.ourfamilybudget.com/how-to-buy-rental-properties-in-a-down-market.html Just another WordPress weblog Wed, 11 Aug 2010 15:19:00 -0500 http://wordpress.org/?v=2.8.5 hourly 1 http://www.ourfamilybudget.com/how-to-buy-rental-properties-in-a-down-market.html/comment-page-1#comment-455 jd Fri, 02 Jul 2010 20:34:12 +0000 http://www.ourfamilybudget.com/?p=157#comment-455 my son and i started out to purchase rental property. instead, while he was in grad school, living on scholarships, grants, and loans (very low interest), he bought a $40,000 2 bedroom house in excellent condition. it took a lot of help from a realtor who was willing to do a lot of work. these houses are usually sold 'As Is' but we insisted upon inspections. after owning that house for 2 years, we purchased another (this time my son and i own it jointly). again, we were able to purchase a house that sold 11 months before for $77,000 but we paid only $38,000 for it. again, inspections cost us money upfront, but were worth it. my son now lives in house #2 - a block from house #1 which is rented out. house #1 pays most of the expenses for both houses. we plan to buy other houses in the same little enclave - near three universities but bounded on two sides by dead end streets making it virtually crime free since home invasions are greatly diminished if the burglars have only one exit path. the first house was purchased before the present real estate 'flop'. the second, much nicer house, was a foreclosure. we're hoping to be able to buy one more before interest rates climb too high. we were able to pay cash for house #2 which saves us a lot of monthly outlay. jd my son and i started out to purchase rental property. instead, while he was in grad school, living on scholarships, grants, and loans (very low interest), he bought a $40,000 2 bedroom house in excellent condition. it took a lot of help from a realtor who was willing to do a lot of work. these houses are usually sold ‘As Is’ but we insisted upon inspections. after owning that house for 2 years, we purchased another (this time my son and i own it jointly). again, we were able to purchase a house that sold 11 months before for $77,000 but we paid only $38,000 for it. again, inspections cost us money upfront, but were worth it. my son now lives in house #2 – a block from house #1 which is rented out. house #1 pays most of the expenses for both houses. we plan to buy other houses in the same little enclave – near three universities but bounded on two sides by dead end streets making it virtually crime free since home invasions are greatly diminished if the burglars have only one exit path. the first house was purchased before the present real estate ‘flop’. the second, much nicer house, was a foreclosure. we’re hoping to be able to buy one more before interest rates climb too high. we were able to pay cash for house #2 which saves us a lot of monthly outlay.
jd

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