Taking the real estate investment plunge
An acquaintance of mine recently purchased two foreclosure homes at $5000 each. He paid for them on a credit card and is in the process of fixing them up.
The properties are multilevel homes, and his plan is to break them into individual rooms to rent at $500 per month. He’s looking at having about 20 or so rental units which, if fully rented out will yield about $10000 per month.
$10000 is not a fortune; but it’s a great start towards building a fortune.
Since he paid for the properties outright he won’t have a monthly mortgage to pay. In just a few months he can pay off the $10000 debt incurred to put the purchases on his credit card. He will then have two investment properties fully paid off and yielding $10000 per month in profit assuming full occupancy.
His plan is to buy additional properties once he’s paid off the credit card debts incurred on this first set. So he’ll have up to $10000 per month coming in on the first two properties, while fixing up another couple of properties to bring in an additional $10,000. Eventually he intends to invest in more upscale properties; but for now it’s about getting started small and building up to the big leagues.
If you’ve beem wanting to get into real estate investing, now might be a good time to get your hands on a few properties if you have some funds to invest. With the current economic crises there are more properties coming onto the market daily.
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