Quote:
Originally Posted by arock10
Pay attention to your ROIs... Appreciation is always risky to rely on, pay more attention to cash flow. Dead equity dragging down returns is not something you want...
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Initially we hadn't planned on getting in on Real Estate as an investment. The home going up for rent was supposed to be our primary home...until we found one more suited to our tastes that was a VERY limited opportunity.
This rental will be a break even, as it was financed more as a primary home with a 10 year mortgage. I'm not too worried about the equity on it in the near future. We owe pretty little and we're not borrowing on it's equity to fund the new primary residence. In 7 years, the passive income will be near $2k a month after property management fees. It'll be nice to have that full loaf for sure.
Down the road, 100% of the decisions (of rental properties) will be based on ROI. With our primary residence, us liking it regardless of the market value is the key. We can hope the value goes up on that, but I personally don't see much upward trend over the next 5 years that is above inflation.
