My husband and I recently took the plunge and invested in a condo with the intention of generating some cash flow. I went against my first instincts, but I'm glad I went out on a limb as there is SO much positive potential with this property compared to the relatively small investment it was.
I never thought we would purchase a pre-sale property, but we did.
I never thought we would purchase a short term rental, but we did.
I didn't think we would purchase in a far-away town, but we did.
What are we doing?!
With so many uncertainties ahead, it's a little nerve wracking and a lot exhilarating. I'm most looking forward to the entrepreneurship I can apply to this project and seeing where we can take it. I enjoy the game of making an attractive listing, hosting guests and giving them an excellent experience. I've been an airbnb host before in our home, and now it will be from afar in our little getaway pad.
It wasn't too hard of a decision to know this path was right for us, but like I always do, I analyzed the possibilities ad nauseam before we went this far. At this stage, we believe it's the best decision for us, but who knows what the future will bring.
I wrote this post because there are a lot of you out there in the FI (#financialindependence) community who are real estate investors and I'm hoping to learn from you. Here are the Pros and Cons we foresee:
PROS
regular monthly cash flow
build net worth / equity
diversify your portfolio from the stock market
learning a new skill of being a landlord
use capital and income from one property to fund the next
someone else paying off your asset
flexibility to fund your own lifestyle or needs through cash flow or selling the property
CONS
being responsible for repairs and maintenance
potential for an unpleasant experience with tenants
risk of going a period of time without tenants (negative cashflow)
searching for new tenants and potential anxiety if there aren't bookings or applications coming in
searching for a good support team if you need it in another town (ie cleaners, maintenance, etc).
working on issues that arise takes up your free time
Please let me know if you have feedback or experiences you would like to share. Send me an email or comment below so others can learn too!
I write short and sweet articles for people looking to improve their daily routines in the way of saving money and living minimally. If you like what you see here on the blog, I invite you to subscribe below - I don't have time to spam you!