What you may not understand is that while it looks good on paper (and 7% is ridiculously high right now), most people lack the motivation/work ethic to blow up like this. The farthest most people will go is 4yrs college then decent job, wife and house. No investments. Sheeeeit I remember when I delivered those freezers to your pizzeria and 6 mos later you sold it at a profit.
jeez we don’t have anything like this in Ontario that i know off… i’d do that in a heart beat… can Canadians get in on that
Even what Misteroman posted, which is awesome, can’t be done up here without an ownerhold mortgage. You need like 30-50% down on a commercial property…
I’m a little late to the party, but I would keep it if you don’t have an “oh shit” fund, otherwise investing in property is certainly not a bad move if you do it right. I’ve done this for the past 4.5 years. I have two side by side duplexes in Cheektowaga, right near Union and Cleveland. I am definitely not as diversified as Derrick, but to give you an idea…
I bought the first one in 2007 where I owner occupied until I bought my 3rd house (single family in 2010) and bought the second in 2009. Have a 15 year mortgage on both of them and with mortgage, tax, insurance, etc., I net $600 a month with the rent collected. At this point in the game I also pay down approximately $3000 per year in principal on each of the two houses. So all together I “net” about $12,000 a year. Rent has also been steadily going up in the area, so I expect to earn more as I turn over tenants.
The important part to renting properties is to keep the properties in good condition. A nice kitchen and bath will rent the house every time. I normally have 3-5 different people to choose from each time I show one of my rentals.
It’s not going to get you rich over night, but it’s nice to think in 15 years you’ll be pocketing that money instead of paying off a mortgage. I would probably own at least 1, maybe 2 more if I were single and didn’t have a family. I needed more space and a nicer yard for the kids when they get older, so I opted for a single family this time around. Just don’t have the time with my real job and family to work on more rentals at this time.
Honestly, I’m no good with paper investments.
As stupid as it may sound, I’m going to save and shop for a dozer.
I can’t afford to keep beating on the little tractor when I can’t get the bigger ones in there.
To me, its an investment in maintaining my current 200 acres
And if you know what you’re doing, you can also make a shit ton of money on it. Two of our customers just paid 40k to have a pond dug and land flattened lol. Now i am not sure how much profit that is, but it’s a lot. Even if you only get one or two decent jobs per year.
I’m suprised actually. You can find late mid 90’s case 450s with cummins in them for 10-15k rather easy.
Cummins parts / motors are easy to come buy. I just have to make sure parts are still avabile for the undercarrage to keep in good shape.
hoses and cyl can be rebuild.
