Between my wife and I we have approximately $1500 spare every month, I am toying with the following idea

Between my wife and I we have approximately $1500 spare every month, I am toying with the following idea

>buy cheap rental property for $40-60k
>rent for $500 a month
>put the 1500 extra we have and the 500 rent to the mortgage per month
>within 2 years should have it paid for
>repeat again with house number 2 having it paid for in even less time
>repeat with house 3
>repeat with house 4

What am I missing in this idea? Surely it cant be this easy is it? My current living situation is ideal for this, we live in a house thats paid for, cars are paid for, education is paid for. We can save as much as we want because we have very little necessary expenses.

Your success will depend on your local laws and the class of person you rent to. If you rent to stable whites in a county with laws that favor the landlord you will do well. If you rent to section 8 niggers in a big city you will not.

>What am I missing in this idea?
The niggers who will destroy your investment

In my area $500 will cut out the super trashy niggers and white trash, and it shouldent be high enough that it isnt unrealistic to rent. I am in a very rural area that is probably 80% white 20% black or mexcian.

what flyover shithole do you live in

foothills/piedmont area of North Carolina

I'm so, so sorry

Oh God. Sorry for your loss.

Absolute best place to live IMO. I have a decent sized city 30 minutes from me and when I come home Im surronded by quiet and nature. I hate cities.

Also back on topic, the laws here are not great for a landlord, but worst case scenario you can have them out in 2 months.

Other than bad tennats what are the pitfalls of renting?

Consider setting up a limited liability corporation (LLC) and owning the property through that. It can save you some headaches if something goes wrong as it limits your personal liability.

Yea me and my wife had talked about this. We said we would set up one after we bought a second house assuming everything goes well with the first one. From my understanding single entity LLCs are basically useless so we would both try to be on it.

Why do you think that you can do better than big real estate and property management companies that have billions of dollars and the economy of scale at their disposal?

Honestly you should just buy REITs instead.

Because those places dont operate in rural areas like where I live. If I lived in a larger city I wouldent even consider it.

I'm guessing you're not on the West coast

Why does that matter?

Holes in your calender. You could be waiting months for tennants. Your entire worth will also be tied to your house and you will be taxed for the property and also HOA fees.

its a good idea, depending on the future of the real estate market. but in general, the real estate market seems to get more expensive so there ya go

>what am I missing
property tax

if theres an hoa do not buy it as a rental, they are miserable to deal with to begin with. if you are pretty handy i would recomend buying a foreclosure cheap, fixing it up enough to pull a refi, take that money roll it into another one and put the original property on the market for rent or sale. finance your empire with your investment property

Better yet, find a rundown shithole near city for dirt cheap. Fix it up and rent it out to college students.

This isn't an argument. You could say this about every venture ever. Always a bigger fish.