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Have built up a fair amount of savings. What's the best way to start investing in real estate for a beginner?

Long term or short term.

I have a vacation condo in Pigeon Forge but don't have enough to buy another one yet.Just looking for more ideas since money in savings doesn't help much.

Update:

Actually, because of the HOA, a condo is the best way financially. You have a shared upkeep cost and someone is always there to keep an eye on things. After 3 years of ownership, profits have been great.

Update 2:

I never said I had made enough to pay for the place. If I had, I would buy another one. Your comprehension skills are weak "A Hunch". If you can't answer the question, just go away.

Update 3:

"Profits are not the same as cash flow"

Not true.

4 Answers

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  • Anonymous
    1 month ago

    Reits are a very simple answer. Otherwise I would buy a rent house. 

    However, real estate is regional. You really need to understand the area. You can buy a mansion in Detroit right now for around $10k or a 400 sq foot shack in San Francisco for $1M. I'm not joking. It's like the old adage: Location, Location, Location. 

    I would never buy a condo as an investment but that's my personal opinion. I just believe there would be too many things outside of my control. You can easily make a 12-15% return on REITs without even putting on pants. 

  • 1 month ago

    The best way is by not buying a secondary property and having to deal with all the hassles that come with it. I'd much rather put my money into an REIT. Chances are the rent you are collecting won't beat the distribution yield. 

  • 1 month ago

    "After 3 years of ownership, profits have been great." Profits come after all expenses are paid.  Profits are not the same as cash flow. 

    - In 3 years you have recouped the cost of the property and have positive case flow?  I doubt it. 

    Real estate is not a great investment in most places.  California prices are the same now as they were in 2005.  If you bought then and still own the property that is 15 years of "no profit".

    When Trump was ridiculed about how much less he made in real estate vs what could have been made in the stock market, it wasn't fake news.  I don't know if it really matters when you are talking about billions of being made in either.

    To keep your property "safe" an HOA is a great option.  But paying 1/3rd or more of your monthly mortgage for this is not a great way to make money. 

  • 1 month ago

    The first rule of investing in Real Estate is, don't try to do it with a condominium.  The HOA fees well eat your profits up. 

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