Retirement Vs Realestate???

[Dougstermd]

Ok I have been looking at some multifamily buildings in the area.

20% down required on anything more than two units.

I am considering withdrawing my retirement to make a purchase of a three unit building with garages.

I know what most are gona say about not touching your retirement.

But I see the apartment building as a retirement type investment also.

although you do not get an APY from the building you are automatically getting the 6% interest you are not paying on the portion of the mortage that I did not borrow. Further you get some realestate appreaciateion.



So I am here looking for opinons.

Cause everybody knows that a sane person would not look here for advice

 

[vraiblonde]

I think real estate is as good an investment as anything else you've got your retirement socked into.

 

[cattitude]

:slumlord:

 

[Dougstermd]

I think real estate is as good an investment as anything else you've got your retirement socked into.

yes that is what I keep telling myself just kinda scared to take that leap plus that 10% tax penality is somewhat of a deterent:yay

 

[Dougstermd]

:slumlord:

I always did good with Baltic when playing monoply

 

[willie]

If it's low rent, forget it. You will spend half of your time at the courthouse filing evictions and the other half repairing holes in the walls. Low rent tenants nearly always produce many holes in the walls.

 

[Dougstermd]

If it's low rent, forget it. You will spend half of your time at the courthouse filing evictions and the other half repairing holes in the walls. Low rent tenants nearly always produce many holes in the walls.

Stereotypeing I low renters???

I think all of Hagerstown is Low rent

 

[Vince]

Stereotypeing I low renters???

I think all of Hagerstown is Low rent

Not so much sterotyping as "that's just the way it is." As a landlord be prepared to take it in the shorts. If someone doesn't want to pay their rent and stay in your apts. for free, you'll be years getting them out through the court system. If you're going to invest in real estate go for land. They're not making anymore of it and you don't have to fork over money for repairs, new heating units, plumbing, walls, floors, etc.

 

[willie]

Stereotypeing I low renters???

I think all of Hagerstown is Low rent

When it comes to your money (or safety) stereotyping is all good.

I always had a high regard for Hagerstown formed many years ago. In the past year I've had to visit there a few times and that place has bred some scummy areas. I would think twice before investing there.

 

[itsbob]

Ok I have been looking at some multifamily buildings in the area.

20% down required on anything more than two units.

I am considering withdrawing my retirement to make a purchase of a three unit building with garages.

I know what most are gona say about not touching your retirement.

But I see the apartment building as a retirement type investment also.

although you do not get an APY from the building you are automatically getting the 6% interest you are not paying on the portion of the mortage that I did not borrow. Further you get some realestate appreaciateion.



So I am here looking for opinons.

Cause everybody knows that a sane person would not look here for advice

You will get an APY from your building.. Take the amount of rent you are receiving yearly compared to the cost of the building, that will give you your APY, if you are making 30,000 a year in rent, on a 300,000 building you are making 10%APY (this is an EASY solution to the APY problem, it's more involved than that).. Problem comes in where you have to make more than what your payment is.

As far as taking out your retirement to do it.. nothing is without risk. You can be safe and play the retirement game, or take a chance and MAYBE make more, significantly more, or lose.. nobody got rich by not taking chances.

 

[Dougstermd]

You will get an APY from your building.. Take the amount of rent you are receiving yearly compared to the cost of the building, that will give you your APY, if you are making 30,000 a year in rent, on a 300,000 building you are making 10%APY (this is an EASY solution to the APY problem, it's more involved than that).. Problem comes in where you have to make more than what your payment is.

As far as taking out your retirement to do it.. nothing is without risk. You can be safe and play the retirement game, or take a chance and MAYBE make more, significantly more, or lose.. nobody got rich by not taking chances.

Thanks Bob that is the way I was thinking on this whole situation.

plus I have like 30 more years to work and build my new retirement account / pension :shrug:

 

[itsbob]

When I was a landlord I had a rental company manage the property for me.. they charged like 5% of the monthly rent and they took care of EVERYTHING.. collected rent, evicted if they had too.. did minor maintenance, and did quick major maintenance than in turn charged me for it.

You can also hire a rental management company to just find your renters.. let them interview, do credit checks.. etc.. They usually charge a percentage of the first months rent, then you take over the daily management tasks.. A little less risky than doing it yourself.. ONE) - they usually have a pool of past renters with good records that may be renting a current property they manage but just looking for something else..TWO) If you have a renter move out unexpectedly (like mid lease) they can usually get another renter in there PDQ..

personally I think it's worth the expense, but again, there is no guarantee

 

[BadGirl]

Doug, if you rent out the apartments, PLEASE perform due diligence and run a credit check and an employment verification on EVERY SINGLE applicant. I can't stress this enough.

And also make sure that your lease indicates who the tenants are of a particular unit. You want to ensure that Joe Schmo signing the lease doesn't move in all 12 of his cousins, their spouses, and their 27 kids.

 

[BS Gal]

Doug, if you rent out the apartments, PLEASE perform due diligence and run a credit check and an employment verification on EVERY SINGLE applicant. I can't stress this enough.

And also make sure that your lease indicates who the tenants are of a particular unit. You want to ensure that Joe Schmo signing the lease doesn't move in all 12 of his cousins, their spouses, and their 27 kids.

 

[itsbob]

Doug, if you rent out the apartments, PLEASE perform due diligence and run a credit check and an employment verification on EVERY SINGLE applicant. I can't stress this enough.

And also make sure that your lease indicates who the tenants are of a particular unit. You want to ensure that Joe Schmo signing the lease doesn't move in all 12 of his cousins, their spouses, and their 27 kids.

I find it incredibly sexy when you are all

 

[awpitt]

Doug, if you rent out the apartments, PLEASE perform due diligence and run a credit check and an employment verification on EVERY SINGLE applicant. I can't stress this enough.

And also make sure that your lease indicates who the tenants are of a particular unit. You want to ensure that Joe Schmo signing the lease doesn't move in all 12 of his cousins, their spouses, and their 27 kids.

Also, crmiminal background checks.

 

[marianne]

I went through the same questioning a while back. I'm assuming your "retirement" that you're talking about touching is in stocks. The advice I got from my financial consultant was to keep a balance between stocks and REIs. We try to split it about 50% stocks, 50% REI.

 

[beachbunny]

Using Real Estate

Just a suggestions but had you thought of taking full advantage of it being a buyers market right now and simply using that as leverage to having the seller pay your down payment and using 80/20 loans so you don't have PMI. You can leave your retirement alone for now but have that as a safety net incase you need help? Do you already own another home? Maybe if you need funds you could just get a HELOC?

It's still a great buyers market and I'm sure there are some great deals out there and sellers very flexible to make them happen.

Just a thought.

Ok I have been looking at some multifamily buildings in the area.

20% down required on anything more than two units.

I am considering withdrawing my retirement to make a purchase of a three unit building with garages.

I know what most are gona say about not touching your retirement.

But I see the apartment building as a retirement type investment also.

although you do not get an APY from the building you are automatically getting the 6% interest you are not paying on the portion of the mortage that I did not borrow. Further you get some realestate appreaciateion.



So I am here looking for opinons.

Cause everybody knows that a sane person would not look here for advice