Does this make sense?

Hi All!

I'd like to purchase rental property, but I don't believe the rental income
will cover the mortgage payment (and other expenses) ... I currently am in
a home with a studio that I can rent out and was wondering if it makes any
sense to rent out the studio and buy rental property and if I am able to
get positive cash flow on the two rentals combined...

I usually think of a rental property sustaining itself w/ the rents coming
in being able to cover the note (and other expenses) related to the
house... In this case, I'll need to rent out a room in our current home to
help cover the cost of buying/renting the house... Any thoughts or comments
are appreciated ...

DaveyBoy

Re: Does this make sense?

In article <>,
Davey Boy <> wrote:

> Hi All!
>
> I'd like to purchase rental property, but I don't believe the rental income
> will cover the mortgage payment (and other expenses) ... I currently am in
> a home with a studio that I can rent out and was wondering if it makes any
> sense to rent out the studio and buy rental property and if I am able to
> get positive cash flow on the two rentals combined...
>
> I usually think of a rental property sustaining itself w/ the rents coming
> in being able to cover the note (and other expenses) related to the
> house... In this case, I'll need to rent out a room in our current home to
> help cover the cost of buying/renting the house... Any thoughts or comments
> are appreciated ...
>
> DaveyBoy

I'd never consider renting a room in my house. There are too
many bad things that can happen. You can never know someone
well enough to take that risk. Even in cases of getting married
to the other person, the male ends up losing nearly everything
about half the time.

If a property doesn't cash flow, then you have to determine
if you are willing to take a risk on it. You have the upside
of getting very, very low mortgage rates right now, something
you may not see in the future. We also have very low rents
right now, so you may be able to get more rent in the future.
So, can you feed the property until you can turn around the
cash flow?

-john-

--
============================================================ ==========
John A. Weeks III 952-432-2708
Newave Communications
============================================================ ==========

Re: Does this make sense?

"Davey Boy" <> wrote in message
news:
> Hi All!
>
> I'd like to purchase rental property, but I don't believe the rental
> income
> will cover the mortgage payment (and other expenses) ... I currently am in
> a home with a studio that I can rent out and was wondering if it makes any
> sense to rent out the studio and buy rental property and if I am able to
> get positive cash flow on the two rentals combined...
>
> I usually think of a rental property sustaining itself w/ the rents coming
> in being able to cover the note (and other expenses) related to the
> house... In this case, I'll need to rent out a room in our current home to
> help cover the cost of buying/renting the house... Any thoughts or
> comments
> are appreciated ...

Once some years ago my wife and I bought a 5 unit apartment building and
lived in one of the units ourselves. The rents from the other 4 were enough
to cover the mortgage on the building and then some. Later, we moved to
another city and kept on renting all 5 units for 2 more years before selling
the building at a slight profit. This plan worked well for us.