It was when I moved to Miami, I got extremely interested in real estate. I remember the moment clearly. I was picking up a dresser some lady was selling at her luxury condo. I asked how she and her husband were able to live in such a nice place, and her husband explained to me briefly about Miami real estate and the rental market. He basically told me it was cheap, as this was only a couple years after Miami bottomed out. He also explained to me that the cap rates were amazing, (net operating cost/purchase price). He also pointed out that buying higher end property was better because you don’t have to deal with being a slum lord chasing down rent checks. After this, I did a substantial amount of research in real estate, and came to the conclusion that in the future when I had more money saved up, this would be my primary source of passive income.
Where we are at now
Eileen and I currently have 4 properties which I consider three to be A-class, and one to be C-class. We reside in one, and have been lucky to have no vacancy in the other 3 properties. The one we live in now, was a fixer upper and I was my own contractor, which was a lot harder than I thought. I really enjoyed the process of transforming our condo into a beautiful place for us to live. We had a few realtors come in to take a look, and the consensus was that I could easily make $130,000 before taxes and fees if I were to consider flipping it. Eileen shut that idea down very quickly as she didn’t want to keep moving. I really do want to get into the flipping game, however, Boston is extremely pricey now and it seems like it keeps rising, and I’m not comfortable, right now, flipping in the surrounding cities as I do not know as much as I should about them. Eventually I will do much more research on the surrounding cities, as well as how to properly flip a house, as my first renovation project was a real pain and was far from smooth. I will expand into all of this in future posts.
Are you a landlord or a flipper?