Investment properties

[mayday]

imported post

kajasmon To be a landlord or not to be that is the question whether tis nobler to suffer the slings and arrows of outragous misfortune or to bear arms against a sea of troubles. I have been a landlord for a number of years. I have also been a long distance landlord. I would not suggest to anyone to buy rental property that is so far from site unless you vist the area quite frequently which by the way is a tax deduction. It is hard enough taking care of a property that is in close proximity. Normaly a renter does not take care of your place like you would. I loathe going to court. If your hell bent on buying long distance property how about a place in Hawaii or Miami you could go there and write off the trip expences every time you go. Aloha.

 

[Birchtree]

imported post

. Kajasmon,

These questions are always so emotional - if you are following your hearts' desire then my answer will not suffice. Perhaps Pyriel will weigh in later - he has property and can tell you how much work is involved.

I'm a contrarian type and as such my perspective is slanted. Presently the rental and housing market in general is on fire depending on your location. I wouldn't go in unless you are a Fireman. You could be entering close to the top and that could be dangerous to your financial health for several reasons. If you are planning on being an absentee landlord you could be hurt or even worse. It's a hugh gamble if you don't have experience.

I apologize for using scarey language. Rather put the money in a Roth IRA and buy REITs that yield good dividends, they will dollar cost average for you every 3 months. Remember next year you can put in $15,000 into TSP-they are removing the 15% limitation- that should help adjust you income level for taxes. Also you are going to get a tax bracket reduction. I think the Fed may be after the housing speculators and they will cause pain you won't want.

 

[kajasmom]

imported post

Greetings-

Have a question-We own our home in MD.A close friend who lives in Texas suggestedfor use to invest in rental properties in Texas, where houses are cheaper and will help in reducing our taxes. Another friend suggestion section-8 rental investment in Baltimore, MD. We have 2 young children, saving for their education, i am currently contributing 15% to my TSP and husband 12% in his job's retirement plan.

Any pros and cons to investing in rental properties with the current market? or should we just save the money

Thanks