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The Water Cooler
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Should I buy this apartment investment property?
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<blockquote data-quote="_CY_" data-source="post: 2907567" data-attributes="member: 7629"><p>never said putting down 20% is the wrong answer .. you suggested paying cash for a house outright. which depending on someone's situation would be a good thing to do. but not if someone is age 25 and apparently on the right track to making a commitment to own investment property(s).</p><p></p><p>it's not exactly a secret if property is owner occupied that you can get in for 5% or less down payment especially for a first time homeowner. one of the best tactic (when you are still single?) is to purchase a property as your primary residence, then move in, do improvements. then purchase another property as your primary residence, move in and repeat. lender could put restrictions that homeowner must reside on property for x years. which is OK as this process should be methodical as someone builds up their asset base slowly. everyone is different but usually it's better to not be in a hurry. making one high stakes mistake can take you out and/or cost you dearly.</p><p></p><p>above is perfectly legal, especially if borrower has large cash balance that reduces chance of default to lender close to zero. more likely is lender will sell note to a secondary market.</p><p></p><p>an option not open to most is to use that hard won cash to purchase an investment property outright, improve property. then borrow against a paid off property to get your cash back out to restore capital to original strength. then repeat ... keep in mind above is only for someone that has made the decision that real estate is one of the best/safest investment anywhere. nothing is fool proof .. LOTS of stuff can and do go wrong. preserving your cash/capital is one of the best ways to survive when things go wrong.</p><p></p><p>there's other tactics that are not apparent that no one has even remotely touched yet. owning investment properties is NOT for everyone. most folks have trouble just buying a car without going upside-down and their home will be the single largest purchase in their lifetime. in no way shape of form am I saying that path is wrong. just that owning investment properties does take a different mindset.</p><p></p><p>it can be huge PITA to manage properties or smooth going. bottom line is if done right has huge rewards!</p></blockquote><p></p>
[QUOTE="_CY_, post: 2907567, member: 7629"] never said putting down 20% is the wrong answer .. you suggested paying cash for a house outright. which depending on someone's situation would be a good thing to do. but not if someone is age 25 and apparently on the right track to making a commitment to own investment property(s). it's not exactly a secret if property is owner occupied that you can get in for 5% or less down payment especially for a first time homeowner. one of the best tactic (when you are still single?) is to purchase a property as your primary residence, then move in, do improvements. then purchase another property as your primary residence, move in and repeat. lender could put restrictions that homeowner must reside on property for x years. which is OK as this process should be methodical as someone builds up their asset base slowly. everyone is different but usually it's better to not be in a hurry. making one high stakes mistake can take you out and/or cost you dearly. above is perfectly legal, especially if borrower has large cash balance that reduces chance of default to lender close to zero. more likely is lender will sell note to a secondary market. an option not open to most is to use that hard won cash to purchase an investment property outright, improve property. then borrow against a paid off property to get your cash back out to restore capital to original strength. then repeat ... keep in mind above is only for someone that has made the decision that real estate is one of the best/safest investment anywhere. nothing is fool proof .. LOTS of stuff can and do go wrong. preserving your cash/capital is one of the best ways to survive when things go wrong. there's other tactics that are not apparent that no one has even remotely touched yet. owning investment properties is NOT for everyone. most folks have trouble just buying a car without going upside-down and their home will be the single largest purchase in their lifetime. in no way shape of form am I saying that path is wrong. just that owning investment properties does take a different mindset. it can be huge PITA to manage properties or smooth going. bottom line is if done right has huge rewards! [/QUOTE]
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