Quote:
Originally Posted by Bill Brasky
We’ve been looking on Redfin but the HOA dues on a condo are insane. They can be upwards of $500/ month on top of the mortgage. We’re looking in Seattle, so the competition is fierce. I love the cabin in the woods idea. We toyed with getting a vacation style property but the appreciation just isn’t the same.
We’re in the same position where our net worth is all in our house but it’s appreciating at 40% yoy. It’s the best investment around.
|
WTF? 40%?????
Yeah, that's not sustainable. And you certainly shouldn't expect anything like that kind of a return on an investment property. That's an absurd return.
In terms of finding RE particularly homes, as investment vehicles, there are a lot of other things to consider.
Debt service is obvious, but cash flow needs to be considered too. There is the monthly shit, but it really sucks when the air conditioner or water heater shits the bed or whatever else. That really puts a cramp on stuff.
I'm not sure what you can secure for financing, but interest rate risk is a concern.
Historically the way to make money on Real Estate was through rental, which you pretty much have to treat like a business. That's the way I'd approach this if you're looking to find a return.
If you're looking for a vacation home, I'd treat it like a vacation, not an investment.
Just my $.02.