 |
Canadian Investor |
| |
 |
Hi Edith,
I live in Canada and employed by a Canadian-based home builder. We have a branch which operates in Tampa, Florida and it has got me thinking about investment opportunities.
As an employee of the company, I have the opportunity to purchase a home at a reduced rate. I'm interested in buying a single family home in the Tampa area, thinking that I can get it cheap while the market is bad, hold onto it for several years and rent it out in the meantime until I'm able to unload it after the market improves.
I know there are many things to consider with this type of investment, but what do you think are the biggest pitfalls i could encounter in this situation?
Regards,
Tom
|
| |
| |
 |
Being an absentee landlord is always a challenge, but perhaps you would have some local supervision through your company? That's an important point. You must already know enough about real estate to realize it's not a hands-off investment like stocks or bonds.
Yes, it's true there are lots of bargains to be had down there these days. The big question, of course, is also what the rental market is like, whether you can expect enough to cover your costs and the lost income from your investment. GEtting financing for non-owner-occupied property is not all that easy in today's weird mortgage market, but if you have good credit and enough of a down payment it may be possible. You may find that lenders are hesitant about taking on someone out-of-country who could not easily be sued in case of default. All-cash, of course, always works, and your dollars go even further these days! Perhaps someone down there, an accountant or a broker, can give you some idea of the figures involved. You'd want your own lawyer down there, I'd think. A real estate investor needs to have professionals on tap anyhow -- broker, CPA, lawyer.
|
| |
|
Edith
Originally published on February 28, 2008 |
| |
| |
|
Back to Summary
|
< Previous | Next > |
| |
|
|
