Buy a new rental property in Calgary or sit on my hands?

[Phantomtib]

I wonder if any of you could help me decide.

I have inherited a property worth $350k in Calgary that is fully paid off.
I have a HELOC with MCAP for $200k @ 3.5 (variable).
The property is currently rented out for $1200 utilities separete (contract expiring end of April 2009).

Now, should I go out in search of a new rental property and use the HELOC.
OR
Do nothing and wait for the rental market to stabilize.

I don`t want to sell the property because it has sentimental value and is situated in a nice neighbourhood.


Please help me decide

 

[Thomas Beyer]

QUOTE (Phantomtib @ Feb 26 2009, 05:09 PM)
I wonder if any of you could help me decide.



I have inherited a property worth $350k in Calgary that is fully paid off.

I have a HELOC with MCAP for $200k @ 3.5 (variable).

The property is currently rented out for $1200 utilities separete (contract expiring end of April 2009).



Now, should I go out in search of a new rental property and use the HELOC.

OR

Do nothing and wait for the rental market to stabilize.



I don't want to sell the property because it has sentimental value and is situated in a nice neighbourhood.





Please help me decide

wait for the rental market to stabilize ??? it is stable ! or do you mean: I am waiting for the next boom so rents will go to $2000 ?



Assuming for now that you already own a home that you like, i.e. you do not wish to move into this home: sell it .. as the rent is WAY TOO LOW for a house of that value .. buy three condos for 100-120K instead in a smaller center ...





Here are some posts to get you going:



5 ways to make money http://myreinspace.com/public_forums/General_Discussion/61-3347-5_ways_to_make_money.html



How to get started http://myreinspace.com/public_forums/General_Discussion/61-4391-How_to_get_started_.html



50 Year house price view: http://myreinspace.com/rein_members_only/Members-Only_Discussion/81-6621-50_Year_Calgary_House_Price_View.html



COVERED CALLS / short term money investing: http://myreinspace.com/public_forums/General_Discussion/61-8913-What_else_do_you_buy__besides_Apartment_Buildings.html

 

[GarthChapman]

Live in the property you inherited so it makes financial sense to keep it, and then leverage what you are comfortable with to buy rentals. Now`s a good buying time.

Maybe that means selling or renting out your current home.

 

[RedlineBrett]

That 200k could leverage you into 2, possibly three rental properties that could give you over $1000/mo in cash flow.

Some great deals out there and cheap cheap money make this the time to get aggressive!

It`s against the forum rules to post MLS listed property on anything other than the classified board, but if you`d like a bit more information on specific examples of what I`m talking about send me an email.



QUOTE (Phantomtib @ Feb 26 2009, 05:09 PM) I wonder if any of you could help me decide.

I have inherited a property worth $350k in Calgary that is fully paid off.
I have a HELOC with MCAP for $200k @ 3.5 (variable).
The property is currently rented out for $1200 utilities separete (contract expiring end of April 2009).

Now, should I go out in search of a new rental property and use the HELOC.
OR
Do nothing and wait for the rental market to stabilize.

I don`t want to sell the property because it has sentimental value and is situated in a nice neighbourhood.


Please help me decide

 

[Phantomtib]

QUOTE (RedlineBrett @ Feb 27 2009, 10:15 AM) That 200k could leverage you into 2, possibly three rental properties that could give you over $1000/mo in cash flow.

Some great deals out there and cheap cheap money make this the time to get aggressive!

It`s against the forum rules to post MLS listed property on anything other than the classified board, but if you`d like a bit more information on specific examples of what I`m talking about send me an email.

Sent you an email... Thanks for the replies.

 

[Phantomtib]

QUOTE (RedlineBrett @ Feb 27 2009, 10:15 AM) That 200k could leverage you into 2, possibly three rental properties that could give you over $1000/mo in cash flow.

Some great deals out there and cheap cheap money make this the time to get aggressive!

It`s against the forum rules to post MLS listed property on anything other than the classified board, but if you`d like a bit more information on specific examples of what I`m talking about send me an email.

Redline... I sent you an email but I didnt get a response. Can you contact me at aerialinvestments(att)gmail(dott)com *replace with @ and .

 

[invst4profit]

.

I don`t want to sell the property because it has sentimental value and is situated in a nice neighbourhood.




It`s costing you money every month and if it truly has sentimental value why would you risk having it destroyed by renters.

The good thing is sentimental value diminishes with debt. As suggested sell it or live in it.

 

[RedlineBrett]

QUOTE (Phantomtib @ Mar 4 2009, 02:43 AM) Redline... I sent you an email but I didnt get a response. Can you contact me at aerialinvestments(att)gmail(dott)com *replace with @ and .

Email sent!