Should I invest it all or split 50 / 50 ?

[Wayne]

I have 150,000 to invest. I`m thinking of investing in rental properties. I would like one to be my principle residence. Should I put all 150K into principle residence (with lowere rental suite) and get LOC on it to invest in second,third, or...properties ??? Or should I split it down the middle and invest 50% into each....or ??? I would get LOC on all mortgages I held to increase my ability to continiue to keep investing.

I would like advice from others who have done this already. I originally invested 10K into a house in 2002 and turned it into 150K 6 years later. I would like to invest smart as to turn my 150K into.... ????? MORE ! Would like to keep momentum rolling.


Thanks in advance for your advice.

 

[JPAQ]

QUOTE (Wayne @ Nov 30 2008, 01:36 PM) I have 150,000 to invest. I`m thinking of investing in rental properties. I would like one to be my principle residence. Should I put all 150K into principle residence (with lowere rental suite) and get LOC on it to invest in second,third, or...properties ??? Or should I split it down the middle and invest 50% into each....or ??? I would get LOC on all mortgages I held to increase my ability to continiue to keep investing.

I would like advice from others who have done this already. I originally invested 10K into a house in 2002 and turned it into 150K 6 years later. I would like to invest smart as to turn my 150K into.... ????? MORE ! Would like to keep momentum rolling.


Thanks in advance for your advice.
Hello Wayne,

It all depends on where you want to go with this. How many units do you want to own? How many years, months or days do you need to achieve this? Why would you want to live at one of your rental property units? If you are living in one of your "rental units” by definition it is really not a rental unit. This will affect our tax structure and financing options for the unit. Will this place cash flow without your portion of the MTG payment?
It is better to plan this out instead of just shooting from the hip. Try not to make things more complex then it needs to be. Make a plan and follow it.

Cheers,

Jason

 

[Wayne]

QUOTE (JPAQ @ Nov 30 2008, 03:37 PM) Hello Wayne,

It all depends on where you want to go with this. How many units do you want to own? How many years, months or days do you need to achieve this? Why would you want to live at one of your rental property units? If you are living in one of your "rental units" by definition it is really not a rental unit. This will affect our tax structure and financing options for the unit. Will this place cash flow without your portion of the MTG payment?
It is better to plan this out instead of just shooting from the hip. Try not to make things more complex then it needs to be. Make a plan and follow it.

Cheers,

Jason


I will be purchasing a home to live in. Preferrably with a rental suite down. Rental income will be in the range of about $850 pm for 2 bdrm lower unit. Purchase price of my home will be in the range of $300k. I would like to acquire as many units as I creatively can over and above my primary residence. Rents for 3 bdrms range at about $1000-$1200 pm and 2 bdrms range about $850 pm. I would like to get LOC`s on all mortgages / houses to continue to invest. My bank sais that equity lending is the way to go for me. I need advice on how to best invest my 150k with best return from others who have already done it.



Thanks again

 

[GarthChapman]

Leverage is a powerful ally, as long as the properties cashflow and are purchased at or below market value. And important to pay under market value in descending market conditions as we have now.

So leverage as much as you can - with the above caveat.

 

[Thomas Beyer]

QUOTE (Wayne @ Nov 30 2008, 01:36 PM) I would like advice from others who have done this already. I originally invested 10K into a house in 2002 and turned it into 150K 6 years later. I would like to invest smart as to turn my 150K into.... ????? MORE ! Would like to keep momentum rolling.
get a LOC .. and invest the cash to maximize the asset base as long as the debt can be carried by the asset`s income ! Assume a weak economy going forward in 2009 and 2010 with NDP/Liberals in government .. so be careful and have some decent reserves !