If you begin to be an investor now, you are on your way! Even if the property does not increase in value, payments are being made by others who rent from you. The returns are great. Get with an investment pro Realtor to analyze spreadsheets, discuss 1031's, investigate rent feasibility, etc. Then, have a good CPA look at it, then a lawyer.

First off, let me say that if you think the value of your home will double every ten years, you are crazy, and anyone that would give you this advice is not being very honest with you - at least in Ohio. I bout my house 10 years ago and it is appraising at barely 20% more than what I paid for it in a very nice, sought after, suburban neighborhood, in a very good school district. I woul have to live here 40 more years to double the price of what I paid for it, at the current rate.

There is hope for you though! Find a real estate professional in your hometown that is familiar with your market and can do an analysis of what your home is worth today and what it should be worth in a couple of years, based of off FACTUAL, LOCAL information. Also, you may want make sure they are knowledgable in local rent prices so you know what you are going to get. There are a lot of factors that weigh into the decision, so find a good agent to help you!

Thanks,

John Youker

Investing in real estate has been profitable most of the time as homes usually double in value every ten years. In the last few years home values in the midwest have not increased at that rate. There are some things you will need to think about. You will have to think about the implications of having double payments in the beginning as you are building. Also, could you handle the payments if your old home did not rent in time? Would the rent payments completely cover the mortgage , insurance and taxes? Is this home a desirable rental property? What other properties would your be competing against as a renter? This could be a really great idea or one that could be a nightmare. So do your research and give it some thought.