Newbie rental property question

[Raza Masood]

Hi,
I have a basic question: how do you determine if a rental property is a good investment? I have a condo for which rental income doesn't cover mortgage + property tax + condo fee. I can sell that condo and buy something else but incur selling + buying costs. Or I can keep it because it is still building equity and sell it once the GTA market is doing better. How do experienced real estate investors make these decisions?

Thanks!

 

[Tina Myrvang]

Follow REIN's ACRE system.

 

[Thomas Beyer]

If it were that easy everybody would do it, no one needed any education and everybody would be a millionaire !

That’s why people buy BitCoins like crazy as it is far easier. Is it a better investment though ?

More educational posts for folks new to real estate investing here http://myreinspace.com/threads/educational-rein-posts-by-thomas-beyer.10663/

 

[Cory Sperle]

One negative cash flow sucking alligator property is one too many. Sell it immediately and purchase something that cash flows. Generally speaking individual condos are one of the worst types of income property to own.

 

[garry lee]

Investing in bitcoins and other alt coins is like buying Facebook or google before they hit the public markets. It’s a reallly bad analogy, as you wouldn’t be buying an internet company you would be buying protocols of finance upon which the future will be built on.


Sent from my iPhone using myREINspace

 

[Thomas Beyer]

One negative cash flow sucking alligator property is one too many. Sell it immediately and purchase something that cash flows. Generally speaking individual condos are one of the worst types of income property to own.

Presales condos or assets in fast rising markets with slightly negative cash flow ok albeit far more risky.

Cash is King - Cash-flow is Queen (TM) !

 

[Thomas Beyer]

Investing in bitcoins and other alt coins is like buying Facebook or google before they hit the public markets. It’s a reallly bad analogy, as you wouldn’t be buying an internet company you would be buying protocols of finance upon which the future will be built on.


Sent from my iPhone using myREINspace

Cyber currencies won’t go away. Will BitCoin retain its supremacy and value though if there are 50 other cyber currencies around?

BitCoin is a commodity, not a currency. A bit like gold without goldmines, ie a non-money asset with little intrinsic value yet treasured by many as a store of value.

But gold competes with other metals like platinum, silver, copper etc too or other hard assets like diamonds. Many choices if one wants to store some money in a non-currency form. Ditto soon with cyber currencies.

Valuation murky to non-existent though until proven to be convertible reliably, accurately, conveniently AND non-oscillating.