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Author: Phmerc One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 13936  
Subject: Las Vegas house Date: 12/28/2012 3:38 PM
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Hey everyone

I was hoping to get some advice on a Las Vegas investment home I am considering on purchasing.

The house costs 100,000 and I need to spend about 6,000 in upgrades. The house is 1500 sqf.

I live in Canada so I would hire a property Management company to handle tenants. They charge 10 percent of the monthly rent and I can rent the home for approx 1000 a month.

Other expenses include:

Insurance: 480/year
Taxes: 950/year
Maintenance fee: 100/month

Tenants pay hydro, gas, electricity

I'm 26 years old, with no dependents and live with my parents. I do not want to spend my savings on a large down payment because I'm still saving to move out on my own in 2-3 years. I can take a line of credit for 106,000 for 2.69 percent.

Do you think it's worth borrowing this money to do this? I figure I can put about 750/ month towards my Line of credit and pay about 400-500 from my own pocket a month. I make 4000/ month net but I purchase a lot of stocks per month and figure I can let the tenant build most my equity and if I need to sell the house in 3 years that I can sell the house for a little more than I bought it. Sorry for the rant, any advice is appreciated!

Phmerc
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