Quote:
Originally Posted by qwe
with properties there are a lot of fees/taxes when buying, then you will need to spend to maintain them over the years.... then you need to deal with renters and their bs, if something breaks you need to be there to fix it, unless you get a manager(but that will defeat the purpose).. over a LONG term you should defiantly make money, but let's say you need cash in 5 years (shit happens), you will need to pay alot to sell it, hopefully housing market improves (people been saying housing bottom since two years ago, and now it went even lower), now your houses seen as investment and you will need to pay capital gain tax if you make a profit, etc, etc....
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If you bought them right and factored everything in (especially vacancy rate) and qualified your tenants properly.. you should be fine.. This can be done even with the steep management company costs but you definitely have to buy right and on the right terms..
If you didn't buy at a stupid price in a stupid area to buy in, after five years, you should have a lot of equity you can go back in and borrow against. That way you get that "cash" you needed out of the properties WITHOUT paying any taxes (you may even end up writing the interest off)
If you have properties it's always good to have an open HELOC here and there for your "just in case" money