Quote:
Originally Posted by dshinnick
Hey all-
We're looking at TV not only as a place to live, but also as a source of retirement income.
If I sell my other real estate, which is in California and not easily managed from Florida, I'll have roughly $1M to invest.
We were considering buying, say, four $250k homes and leasing them on annual leases only, and living on the income. If they would each produce $1,500/month net, that would provide enough income for us. And, doing a 1031 exchange, real estate into real estate, would allow me to defer taxes.
We're just not sure what the demand is for annual-lease property in TV. Any thoughts on this? Any alternate suggestions?
Thanks-
Dave
|
Dave:
If you paid cash for those four houses you likely could get close to what you're looking for. Might be tough finding four houses to do a 1031 as a package. Or you can look at houses outside The Villages and pick them up at a discount. I picked up four houses in the last seven months. There are still a lot of REOs, short sales and what I call foreclosure defense cases to be had here in Florida. The volume is starting to drop off compared to previous years but there is still plenty for all that want them.
Another option is to put your money with a Private Money Lender (PML) who works with investors like myself. They are paying 6%-8% most times and charging 14%-15% plus points to investors.
Another option is to become a PML yourself. I pay 10% to PMLs and provide them with an appraisal and a contractors estimate of repairs for every deal they fund. The limit to how much I can borrow is generally 70% of the retail price after repairs so you know I have some skin in the game as well. The PML money is secured by a mortgage on the real estate.
So you have lots of real estate options for your money. The question comes down to do you want to be a landlord into your golden years or be the bank?
If you would like to discuss further please call me
Carl Mullin
CAP Real Estate, LLC
352-446-8559