Real Estate Investments

Rock Steady · 04-12-2006, 01:23 PM

Thanks for the discussion, guys. I'm not going to act on this particular property because I am not yet prepared to be a wise buyer. I am still learning about much of this.

I am figuring on $9,913/mo for a 100% mortgage. The down payment would be a mortgage on my house. So, I have to consider that to be part of the investment capital. At 9913 versus 10800 it becomes much less clear. Vacancy becomes more of an issue. Although, I forgot about depreciation. The tax consequences often make it worthwhile.

I never buy those "For Dummies" books, but I just bit the bullet on this one. "Real Estate Investing for Dummies". Reminds me that I am a novice outside my area of expertise.

Beestie · 04-13-2006, 12:56 AM

Depreciation only helps if you can use it now which most people can't. You have to roll it forward until you sell the property and use it to defer the gain on sale.

A 100% mortgage is a very bad idea unless you have plenty of cash to back it up in which case its a very good idea.

And, like Clodfobble points out, tenants are a demanding lot. You absolutely have to hire a mgt co to run the property.

04-12-2006, 01:23 PM	#1
Rock Steady Day Tripper Join Date: May 2005 Location: Silicon Valley Posts: 784	Thanks for the discussion, guys. I'm not going to act on this particular property because I am not yet prepared to be a wise buyer. I am still learning about much of this. I am figuring on $9,913/mo for a 100% mortgage. The down payment would be a mortgage on my house. So, I have to consider that to be part of the investment capital. At 9913 versus 10800 it becomes much less clear. Vacancy becomes more of an issue. Although, I forgot about depreciation. The tax consequences often make it worthwhile. I never buy those "For Dummies" books, but I just bit the bullet on this one. "Real Estate Investing for Dummies". Reminds me that I am a novice outside my area of expertise. __________________

04-13-2006, 12:56 AM	#2
Beestie -◊\|≡·∙■·∙≡\|◊- Join Date: Feb 2003 Location: Parts unknown. Posts: 4,081	Depreciation only helps if you can use it now which most people can't. You have to roll it forward until you sell the property and use it to defer the gain on sale. A 100% mortgage is a very bad idea unless you have plenty of cash to back it up in which case its a very good idea. And, like Clodfobble points out, tenants are a demanding lot. You absolutely have to hire a mgt co to run the property. __________________ ♠ ♥ ♣ ♦

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