Multi-family house as a capital investment in an aging city

  • Erstellt am 2016-10-02 12:08:58
H

HilfeHilfe

2016-10-04 07:43:17
  • #1


why? The landlord risk has already been discussed numerous times. With "a little equity," 300k could of course also be meant. Then I would definitely opt for owner-occupied property before exposing myself to these risks. But to each their own.
 
M

Musketier

2016-10-04 08:12:01
  • #2


I would rather claim that it depends on the return (including default risk). The positive thing is already that it is not just 1 condo, but 3-4 or a multi-family house. This means that the loss of one rental income does not initially mean a total loss. The more in demand the location, the better you can choose your tenants. This can also reduce the risk of problem tenants. With a good return, I can leverage my equity on the rental property, which I cannot do with an owner-occupied property. The problem is, where can you still find such properties?
 
H

HilfeHilfe

2016-10-04 08:18:10
  • #3


Correct, the prices are "bombed out." Properties with attractive returns harbor both chances and risks. I still consider it risky to first acquire residential property to rent out and live in a rental myself. A rental property you live in yourself does have a certain charm. But not everyone wants that either.
 
A

Alex85

2016-10-04 08:18:46
  • #4
The big mistake is to lump investment property/capital investment and own living together. They are two completely different things that only "coincidentally" both have something to do with real estate.

High equity is a typical yield killer for investment properties, as the return mainly results from leverage.

It is clear that high returns correlate with high risk. But that has just as little to do with not wanting to make a capital investment as long as there is no owner-occupied property yet.
 
M

Musketier

2016-10-04 08:27:24
  • #5
If you follow the line of thought of , that would mean that someone without their own house should also not have larger stock portfolios/options, etc.



Living in your own rented property has the advantage that you can better monitor the tenants' obligations, but this also means, conversely, that you are the contact person around the clock. If you don't want that, it's better not to live in the same house and to have an external property management.
 
A

Alex85

2016-10-04 08:29:23
  • #6
A car dealer should also not sell a Mercedes unless he himself drives one.

Car comparisons are really something great
 

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