I have thought about owning rental property for a few years. Other than in a goals and objectives post I never mentioned the desire on the blog, because it never felt like an actual possibility.
The first problem is that the pure cost of purchasing an investment property on Long Island would be significant. I am not sure where they get their numbers, but one estimate has the median house price on Long Island at $364,000! Even a 15% down payment could buy a house in other parts of the country. This problem probably would have taken care of itself with a few partners (I had some buddies already express interest). The second real problem is that I am worthless when it comes to home repair. Unfortunately, the aforementioned buddies are also worthless, and worse yet, we are all very busy. As such, almost every repair would need a professional.
Notwithstanding, these very two major speed bumps I believe that one day I’ll own an investment property or two on Long Island, however, that may be years away.
So…how am I going to be a Landlord by Year’s End?
My brother-in-law is a very talented contractor outside Philadelphia. Him and another contractor buddy were talking about how they wanted to diversify their income and thought owning property would be a good opportunity to do that since they can fix any problems that may arise (eliminating one concern). However, they don’t have the cash or the credit (since they are both self employed with short histories)…but I have both of those things! Well cash not so much of but I have investments that I can liquidate. The other concern noted above is also eliminated so the prices I saw were one-half of Long Island prices.
I don’t have the answer yet as to how the logistics will work, but I do know it should be an interesting year!