Quote:
Originally Posted by bimmer456
So let me say I know someone who sold a house in San Gabriel, CA for $1 million and then used that money to buy 2 brand new construction houses in Las Vegas. He is renting out the houses for a total of $4000 a month. To me it's not worth it since you have to pay property tax, insurance, HOA, property management. So my estimate is net profit of around $1700 a month and you would have to pay income tax on that so maybe $1300 after tax. That's a whole lot of cash for relatively little in monthly income cash flow. You could just put that $1 million in an annuity and get $5000-$7000 a month with no expenses besides income tax. Or even a high yield savings account will get you around $3300 a month. Not to mention the house he sold must have had a much lower property tax basis so now his property tax may have doubled. And houses in CA are going to appreciate more than in Vegas unless you're talking about the inland empire maybe.
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You have to be concerned with rent payments. I had 2 houses in Austin and one renter stopped paying. It takes months to remove them. In addition there was some damage to the property. Never again…….its a krap shoot and I am too old now to #uck with it. YMMV.
Depending on factors, you can make good money flipping……cars and homes, with the right demographic $$$.