Call me optimistic...?

Asked by Angela, Columbus, OH Wed Oct 15, 2008

I'm done crying about my balances tied to wall st. I don't need the money today, anyway. But I have concerns I'll have enough $$ to send my kids to school, and retire. Or, what if the market tanks in the future, when I DO need the $.
Today the economy is an opportunity to buy low and sell high, which would help me long-term. If I had money to invest in the market now, I would! Nowhere to go-but up! So, I think MY only opportunity to take advantage of this economy is with real estate, I can take out a mortgage to invest there.
We want a bigger house, we just didn't want to tighten our belt to do it now. We live in a family neighborhood, there aren't any rentals in our subdivision. I'm wondering if you can rent this type of home? How much would rent be? Our monthly payments=$1300, could I come close with rent? Am I reading the market right? What are the risks? Upsides? My friends think I'm nuts! My dad thinks I'm onto something. Thoughts?

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Todd Orrill, , Pickerington, OH
Thu Oct 16, 2008
Angela, You ask a good question. I don't think it can be answered with a simple yes or no. I know things are rough with Wall St. but I would not advise pulling everything out at this time. You would realize the huge losses you talk about. The country is in a shift and it will stablize. Once it is stablized and you still want to pull your money out that would be a better time. I would also not look at the Dow loss numbers, but look at your individual stocks or nutual funds. The Dow number is made up of a small percentage of companies and not all companies are hurting. Energy and commodity stocks and funds have been doing quite well in this market.

Part II of your question about real estate and renting. The price you would receive for rent would depend on several factors, location, style, bedrooms, other available units. You can get an idea of price by calling "For Rent" signs to see what others are asking. You can also do an internet search or ask a Real Estate Agent to give you the statistics of the neighborhood which should include average rental price. Keep in mind you may have a greater tax burden with the income of rent. The rental market is soft in some areas of Columbus, meaning rental prices are coming down. People who are stuck with a large payment are taking what ever they can to help cut their losses.

If you would like more information or have a specidic questions please feel free to email me at Todd@ToddOrrill.com or visit my website for helpful information.

Todd Orrill e-PRO
Web Reference:  http://ToddOrrill.com
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Jason Manos, Agent, Dublin, OH
Thu Oct 16, 2008
Depends on the size, location and school district. I specialize in multi-family with over 10yr of investment property and property management experience. The rental market is very strong. I have had 2 clients this yr recently sell stock and invest in 4 to 8 family units. Make sure you do a proper background check before renting. The risks are having someone trash your house or not paying rent. However its a great nest egg for the future plus you can leverge your equity to buy more property in the future. Advertise in Craigs list .
Goodluck Jason
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