Zillow Advice: Investing - I just bought my first house in Feb 2010, how soon can I pick up an investment property? http://www.zillow.com/advice-thread/I-just-bought-my-first-house-in-Feb-2010-how-soon-can-I-pick-up-an-investment-property/376013/ Zillow Advice | Zillow Real Estate Hi Joe, [self promotion deleted ... http://www.zillow.com/advice-thread/I-just-bought-my-first-house-in-Feb-2010-how-soon-can-I-pick-up-an-investment-property/376013/ Hi Joe, <br/>[self promotion deleted by Zillow moderator]<br/><br/>Vanessa Rojas Sun, 20 Nov 2011 02:25:00 GMT http://www.zillow.com/advice-thread/I-just-bought-my-first-house-in-Feb-2010-how-soon-can-I-pick-up-an-investment-property/376013/ 2011-11-20T02:25:00Z It would be best to sit down ... http://www.zillow.com/advice-thread/I-just-bought-my-first-house-in-Feb-2010-how-soon-can-I-pick-up-an-investment-property/376013/ <p>It would be best to sit down with a qualified loan officer and "run the numbers" on what makes sense for your situation. As well as determining if you qualify for an investment loan. The lending qualification guidelines are much more strict these days for investment properties.&nbsp;The $70K in equity is needs further explanation. Primary home equity guidelines and asset requirements have changed over past couple of years as well.&nbsp;</p> Tue, 12 Apr 2011 20:33:00 GMT http://www.zillow.com/advice-thread/I-just-bought-my-first-house-in-Feb-2010-how-soon-can-I-pick-up-an-investment-property/376013/ 2011-04-12T20:33:00Z You had better know the landlord ... http://www.zillow.com/advice-thread/I-just-bought-my-first-house-in-Feb-2010-how-soon-can-I-pick-up-an-investment-property/376013/ You had better know the landlord laws in your state.&nbsp; Some states are almost impossible to get out tenants especially if they have children.&nbsp; Are you prepared to do your own legal work as well?&nbsp; You should wait and spend more time doing research before you lose your primary residence because of poor choices.&nbsp; It is very hard to make money on a rental when most of your money is going to pay off the mortgage - been there done it for over 30 years!&nbsp; If you really wanted to make money on an investment property, you should have considered buying a duplex or a residence with an apartment in it.&nbsp; Wed, 26 Jan 2011 04:40:00 GMT http://www.zillow.com/advice-thread/I-just-bought-my-first-house-in-Feb-2010-how-soon-can-I-pick-up-an-investment-property/376013/ 2011-01-26T04:40:00Z Joe,&nbsp;Congratulations ... http://www.zillow.com/advice-thread/I-just-bought-my-first-house-in-Feb-2010-how-soon-can-I-pick-up-an-investment-property/376013/ Joe,&nbsp;<br/><br/>Congratulations on homeownership! &nbsp;Investing in RE is often a much larger risk than one can understand. &nbsp;The risks involve tenant issues as many have stated below, they involve litigation issues, they involve damage to property, or normal wear and tear which is usually greater on rentals. &nbsp;Just like driving the heck out of rental cars, tenants thought is, oh that's broke, well it isn't mine concern and many things often go unchecked and un-repaired. &nbsp;I like the idea of having 6 months in reserves for issues that come up, however that should be on top of 12 months of reserves for your household. &nbsp;What we never think about is what if my job is lost, what if I am injured and can't work, what if my wife leaves me, what if my child becomes ill, this list could be endless. &nbsp; All of these concerns mean a drain on your finances, while at the same time trying to keep up two houses....It's tough, and a real reason 50% of Floridian's are loosing there homes and or investments. &nbsp;I work with hundreds of home owners, both VERY Wealthy and Poor, those that were wealthy are now less financial "stabile" because of some unforeseen incident. &nbsp;I am not trying to shoot your hopes and dreams down, just trying to be a voice of reason! &nbsp;PS. I invest, i generally buy homes under $50K 3/2 1500 sqft and rent them out &nbsp;for $800 month. &nbsp;I borrowed on a few of them, sold them for small profits, now i own my investments mortgage free. &nbsp;I never took "Equity" from my primary residence to invest in other homes, because that would be putting to much stain on my families roof for my gain. &nbsp; Best of luck, if you want to review some of my investments, email me. &nbsp; Mon, 06 Dec 2010 15:01:00 GMT http://www.zillow.com/advice-thread/I-just-bought-my-first-house-in-Feb-2010-how-soon-can-I-pick-up-an-investment-property/376013/ 2010-12-06T15:01:00Z Hi Paul, yes, there are definitely ... http://www.zillow.com/advice-thread/I-just-bought-my-first-house-in-Feb-2010-how-soon-can-I-pick-up-an-investment-property/376013/ <p>Hi Paul, yes, there are definitely down sides to renting. I just had a similar experience...renter left without notice, and managed to turn off ALL the utilities. Had to pay hook up fees, and just managed to get heat back on before a major freeze. Now, looking for a new tenant durning the holidays is no fun....1500 a month is no fun, but what can you do?<br/>Jim, HSOA</p> Sun, 05 Dec 2010 15:45:00 GMT http://www.zillow.com/advice-thread/I-just-bought-my-first-house-in-Feb-2010-how-soon-can-I-pick-up-an-investment-property/376013/ 2010-12-05T15:45:00Z Personally as an investor ... http://www.zillow.com/advice-thread/I-just-bought-my-first-house-in-Feb-2010-how-soon-can-I-pick-up-an-investment-property/376013/ Personally as an investor myself,&nbsp;just make sure you want to be a landlord it is not always for&nbsp;everyone, also make sure you don't make yourself cash poor meaning I would keep at least 6 months of payments liquid. especially if you end up with more than 1 rental its a good start. I have about a dozen right now and it starts to get rough. Like this month is 1 empty property that I'm selling the last 4 months. Then 1 tenant had his wallet stolen with&nbsp;a $1000.00 in it, which was 650 for my rent. Then another moved out without giving me a 30 day notice 5 months before the lease was up, another only had 250 of 700 because he had a garnishment start so he filed for bk.&nbsp;So this ends up costing me an extra 2000 for the month.&nbsp; Then I finally just got rid of a deadbeat renter that trashed my house and between the repairs and non-payment of rent cost me almost $10,000&nbsp;and took them to court and got screwed on that also because can't hardly collect on someone that is jobless and the judge screwed me and only awarded me a default judgement of 2700 even though they didn't show up.&nbsp;Then last month I had to reroof 3 of my homes which cost me about&nbsp;10,000.&nbsp;<br/>&nbsp;&nbsp;&nbsp; Its not bad if everyone calls you on the 1st and says I got the rent come and get it. But when you get people as renters you have to treat it like a business and not let them walk over you and stick to the contract or you'll be in trouble.&nbsp; Personally I have found that If you can buy and flip and make a&nbsp;5-20k &nbsp;profit per flip this is way more profitable. I have been doing 4-5 a year with avg. 10k profit.&nbsp;<br/>&nbsp;&nbsp; If you have a renter in for a long period, awesome if it work that way but it is not a get rich quick deal if that is&nbsp;what your thinking it is. Think of it as a savings acct. and it will take a while to build up the acct.&nbsp; Hope I did'nt scare you away from the idea. But don't forget uncle Sam when you deprec. your ivestment to 0 and then you sell, Watch out he'll take most of your acct.&nbsp; It may be worth looking into moving in and making it your primary residence for 2 years then selling it to eliminate the cap. gains if we still have the exemption. by then.&nbsp; Hope that helps. Just something to think about.&nbsp;Good luck . Sun, 05 Dec 2010 02:56:00 GMT http://www.zillow.com/advice-thread/I-just-bought-my-first-house-in-Feb-2010-how-soon-can-I-pick-up-an-investment-property/376013/ 2010-12-05T02:56:00Z I like your thinking!&nbsp; ... http://www.zillow.com/advice-thread/I-just-bought-my-first-house-in-Feb-2010-how-soon-can-I-pick-up-an-investment-property/376013/ I like your thinking!&nbsp; Best thing is to connect with a good lender and get your questions answered based on current guidelines (they&nbsp;change alot lately :) &nbsp; There are alot of good investment opportunities.&nbsp; Best of luck to you!&nbsp; Also, check our RE investment groups, they abound and you'll learn lots there.<br/><br/>KC in Seattle Thu, 02 Dec 2010 20:49:00 GMT http://www.zillow.com/advice-thread/I-just-bought-my-first-house-in-Feb-2010-how-soon-can-I-pick-up-an-investment-property/376013/ 2010-12-02T20:49:00Z Your Lender can make or break ... http://www.zillow.com/advice-thread/I-just-bought-my-first-house-in-Feb-2010-how-soon-can-I-pick-up-an-investment-property/376013/ Your Lender can make or break the ability to qualify and close the loan so make sure to find one savvy enough to evaluate your overall financial situation. The good ones work wonders! <br/><br/>You'll be looking at 20-25% down to get the best rate and avoid PMI. And of course all the other things to consider like your risk tolerance, time horizon, type of investment property (SFH, condo, multifamily, etc.)...and your overall goals. <br/><br/>Lastly, find an Agent who understands the investment environment. Mon, 29 Nov 2010 17:46:00 GMT http://www.zillow.com/advice-thread/I-just-bought-my-first-house-in-Feb-2010-how-soon-can-I-pick-up-an-investment-property/376013/ 2010-11-29T17:46:00Z Congratulations on buying ... http://www.zillow.com/advice-thread/I-just-bought-my-first-house-in-Feb-2010-how-soon-can-I-pick-up-an-investment-property/376013/ Congratulations on buying a home.&nbsp; Your next move into investment real estate will challenge you as you evaluate your choices on the basis of investment performance versus emotional/lifestyle appeal.&nbsp; Team up with an experienced agent who can help you evaluate different investment options and be sure to do your homework.&nbsp; Don't rely solely on published income figures but instead&nbsp;request copies of&nbsp;Schedule C's from investors selling property.&nbsp; A good agent can help you avoid any number of simple mistakes that could cost you thousands.<br/><br/>Another piece of advice: buy a local property for your first project.&nbsp; The more convenient it is to reach, the more likely&nbsp;you&nbsp;are to&nbsp;maintain your investment and keep tabs on the property while it's rented.<br/><br/>Best of luck! Sun, 28 Nov 2010 19:38:00 GMT http://www.zillow.com/advice-thread/I-just-bought-my-first-house-in-Feb-2010-how-soon-can-I-pick-up-an-investment-property/376013/ 2010-11-28T19:38:00Z Congratulations on your first ... http://www.zillow.com/advice-thread/I-just-bought-my-first-house-in-Feb-2010-how-soon-can-I-pick-up-an-investment-property/376013/ Congratulations on your first home.&nbsp; Hope it has been a great experience.&nbsp; Hope so since you are ready for another purchase.&nbsp; I have found it best for my investors to use a 'local' to your area Bank for investment property.&nbsp; The guidelines that Brokers are having to use have been tighter.&nbsp; Find a good locall Banker and Realtor, and you can have a good start to your journey.&nbsp; Best Regards. Fri, 26 Nov 2010 12:51:00 GMT http://www.zillow.com/advice-thread/I-just-bought-my-first-house-in-Feb-2010-how-soon-can-I-pick-up-an-investment-property/376013/ 2010-11-26T12:51:00Z