Third home

[onebigdummy]

Currently thinking of purchasing a rental property in northern Nevada. Housing very cheap out there. Can pickup in decent areas in the 80-90k range. Rental rates are good to so house would cash flow after taxes/expenses, etc.

About me:

Married 40, two kids, combined income 190k
Primary residence mortgage 430k, value around 730k
Rental property #1, mortgage 240k, value around 450k
401k,iras,roths total around 500k
Kids eductation IRA and 529s around 80k
Cash on hand about 200k

No debt other than the two mortgages above.

Was thinking of making purchase of said property above for cash or use
partial HELOC at which is at 3.75 fixed. We've always wanted to retire
somewhere in the reno/sparks/carson city area. Would it be a good
idea to purchase the property with the intent to rent it out and possibly
in 10-12 years have it as a retirement home for us and a very cheap price
now?

 

[Brat]

Renting to people you don't know from a distance can be problematic. You really need someone nearby who can check on the property.

 

[onebigdummy]

Definetly agree with that. We have a referral property mgmt company already that we would be using.

 

[haha]

Currently thinking of purchasing a rental property in northern Nevada. Housing very cheap out there. Can pickup in decent areas in the 80-90k range. Rental rates are good to so house would cash flow after taxes/expenses, etc.

Is this is Reno/Sparks or out toward Fallon? If in Reno, is it somewhere reasonably safe?

Ha

 

[Milton]

I think you'd be better off focusing on paying down your existing mortages.

 

[onebigdummy]

Is this is Reno/Sparks or out toward Fallon? If in Reno, is it somewhere reasonably safe?

Ha

Yes, it's reno/sparks. I have some contacts that leave in the area so they
are pointing me in the nicer/safer areas.

 

[mh]

My one observation would be you already have a lot tied up in real estate when compared to your other holdings. Personally, i would be hesitant to increase that ratio.

 

[haha]

Yes, it's reno/sparks. I have some contacts that leave in the area so they
are pointing me in the nicer/safer areas.

Thanks.

Ha