Quote:
Originally Posted by LWJ
Here is my theory. Please critique. I am 100% convinced that we will see inflation and increased taxes in the future. I don't see any path out other than this. As such, I need to hedge against inflation and reduce taxes. Assuming that tax law won't change too much, (I know, assumptions!) I believe a fixed interest mortgage is an ideal tool. I am actively looking for rental property to finance with fixed mortgages.
And. I refuse to manage them. I know this cuts a big chunk off my yield but I don't want that stress in my life.
Thoughts?
Larry
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Yes Larry I think that a rental property is a good idea but....
-you need to look at it as a long term investment. My wife and I invested in a condo locally and it is below what we paid for it 7 years ago. However the rent goes into a joint account and it is $$$ we don't fight over.
The condo bldg. is professionally managed but I collect rent, set up leases and do my own ads. I can understand though that you want to have it managed. Cost about 10% of the rent.
- As I mentioned owning it locally is a good idea so you can keep an eye on it.
Some Can. people own property in Ariz. and it costs possibly $1000/month just to have it sit empty in the summer months.Avoid admin. costs by buying locally.
_ Finding good renters may take time. Fortunately our present renters communicate by internet even though they live 3 blocks away.
- Consider buying rental property that you would live in yourself if you had to or desired to later.
- Look at it as a very long term investment unlike the stock market.
Hope this helps!
