<quoted text> Hey THX, I was clearing out old threads and saw where you asked me about rental property. I must've missed it, sorry for not replying. I'll talk to you about It some other time. Remind me. It is pretty enlightening and kinda funny/sad renting to a certain type of people. Das raht
We have been researching the RE market here and the uposhot is property cost is very high, rental income not so much.
My brother is stationed at Fort Hood in Texas and owns a house in the Dallas area he rents out. He bought the house in Dallas in 2006 for $165k and gets $1,350/mo rent, which easily covers his payment and taxes.
The same house here would rent for about the same amount but cost at least TWICE as much. Obviously the numbers don't work on that.
We have to put down at least 20% to get financed, and I'd rather put down more like 30% just to be on the safe side, which would totally tap us out cash-wise. That is something I want to avoid at all costs.
I have had my 401k maxxed for the last 7 years and can borrow enough from that if I had to, but again, I don't want to mess around with that at 38 with 3 kids and a mortgage.
Anyway, just giving you a snapshot of where we're at. I have cooled on the idea of rental property right now in this area (Puget Sound/Seattle) anyway...