Is buying 44 houses, and then renting them out, the best way to GET RICH??
I just watched a television program here in Canada and they explained that the housing boom is the best way to build wealth. They said that Canada produces 180,000 to 190,000 new families every year and that this will always keep the housing market healthy. The ‘expert’ explained that it is easy to buy one or 2 houses every year and that a 20 year old should own 20 houses, a 30 year old should have 30 houses and a 40 year old should have 40 houses. Finally, when you retire at 65, you will have 65 rental houses and you will be RICH, RICH, RICH, and you can pass on your dynasty to your children. This will provide your children with the best future possible. I rent a 4 bedroom / 3 bathroom house for $1,000 and I was thinking that perhaps I should buy the house down the street for $1,500 per month and then rent out half of it. Then 3 months later I will buy another house and rent all of it out, then do the same every 3 months until I finally have 44 houses ( I’m 44). Is this wise? So what do you think? Is this the way to get rich? I don't want to be poor forever, just living and earning a living wage. I want my kids to have a good future and by owning tons of investment homes I finally see the opportunity to be able to retire comfortably.
Public Comments
- I have thought that this would be the perfect time to this. I don't know your financial situation but you must have enough money right now to buy at least one house or you wouldn't ask. I think property investment is a good idea. You have to become the landlord basically and take care of all things that break, or get destroyed by the people you rent to. You also have to pay the rent/mortgage when they fail to do so which could cause financial worries. You never know if you don't try.
- Assuming you are approved for 44 mortgages, how do you expect to pay the mortgage, taxes, insurance and repairs on 44 homes? You would also have to hire a maintenece person, or quit your job because the upkeep on 44 homes would be very time consuming. You would not be able make the rent high enough to make a profit until the mortagage is paid off.
- I,m from Canada too go for it good luck
- I must be doing something wrong. I am 40 something and have only 30 (well, 28, 2 in escrow). They made is sound easier then it is. First, you have to qualify for multiple homes. If you are renting now there is no way you would qualify to buy 2 homes in 3 months. Second, managing all of these homes is tough. Also, it can get costly. I replace 2-3 AC units every summer, and winter has even more problems (long list there). Third, you can NOT count on them remaining rented full time with people who pay their rent every month. It just does not happen. I have only a few that are problem free. But, all that aside, I only owned one house at 20, and about 6 at 30, 20 at 30, and am buying as fast as the mortgage companies will let me right now. But, I do believe my children and my grandchildren (none of those yet!) will be set.
- First, you do need certain income to obtain a mortgage, basicly the bank use 30% ratio to be the mortgage amount, that means, if you made $10,000per month than you qualify for$3,000 for housing expense, which will include your principle, interest, insurance, tax, assuming about 6%interest, expense is $500per month, the bank will lend you around $420,000 .But you need to have credit score and all the document to show you have that kind of income. How are suppose to increase your income every year to obtain a mortgage, also only 75% of the rental can be added into your gross income and then again 30-40% of it is allowed to use as housing expense. Most bank require 20% down payment to purchase a income property (rental unit), and your income has to be increasing so much and is hard to beleived. Whoever this Canadian expert said is just "ANOTHER REAL ESTATE SCAM" There is tons of these people out there selling those books and cd and make everything sound very easy and make you super rich in 2 years, are JUST A DREAM ,it does not work, the only think work for them is HARD WORKING and saving enough money to purchase house step by step. THE EXPERT SELLING BOOKS AND CD GOT RICH BUT NOT ABLE TO BUY 44 HOUSES.
- and where would you get the down payment and closing money for all these houses every 3 months?- you'll be lucky if you have positive cash flow of $100-200/month per house - that's only $300-600 new cash to buy a property with? - not going to happen. And every time you have a new tenant - it will take you at least a month to clean house and find a new tenant - where you won't have any rent income that month. Investment property usually requires a higher down payment and a higher int rate than a owner occupied home due to the higher risk. the philosophy you quote from the TV program is idiotic. you're lucky if 1 of every 10000 20 yr olds has his own house, never mind 20 rental properties. where would a 20 yr old, who isn't even old enough to be in first year job with a college education and probably little or no credit to his name going to be able to afford 20 house in one year? - it's ridiculous and totally unrealistic. Houses also need regular repair and maintenance, especially when you're renting them out.
