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Personal Finances / Credit Cards and Consumer Debt


Subject:  Re: New here! Have questions! Date:  5/6/2013  7:16 PM
Author:  LaraAmber Number:  306976 of 309665

I think you should a big fat black line through "investment property" on your wish list.

For an investment property you a cash flow to support a down payment, closing costs, and insurance just to start. Then you will need to have a separate savings fund to cover irregular repairs, your insurance deductible, and periods of the property standing empty. Let's assume you found a property in great shape and selling for less than it's worth and you can get a tenant right away. Now let's say they sign a one year lease. At the end of the year they move out and the property sits empty for 9 months. And while it sits empty, the water heater breaks and floods the downstairs... That would be a big hit even for someone with great credit, decent cash flow,