Investing In Mahogany Homes For Sale
The Terrible Downs & Amazing Ups Of Home Investing
Just buy one of the many Mahogany homes for sale. Put it up for rent and you are rich! That’s it. Sit back and watch the money roll into your account. Stop reading and go home! Sadly that’s exactly what some people think. You can buy a Mahogany home for next to nothing and rent it for a huge income every month. Nothing can be farther from the truth. Investing in real estate and being a landlord is difficult but rewarding. The lake community of Mahogany has a lot of different homes. Condos, townhouses, attached homes, detached homes, front garage, lakeside estates and more. Getting the numbers right can be tricky. Knowing your numbers and that of your Mahogany home investment is important. There are many ways to make money investing in real estate. Especially if you are renting a long term hold property. There are also many ways to invest in Mahogany homes for sale. Mahogany real estate can be tricky to make profitable if you’re not careful. There are STRs (Short Term Rentals), long term rentals, fix and flips and even short sales. Sadly there is no bare land to invest your money in Mahogany. The final factor is what you want from your investment. What kind of investing personality are you and what are your long term goals? What are your short term goals? This is all very important in the investing real estate world. Especially when your investing in Mahogany homes for sale.Where To Begin When Investing In Mahogany Homes
Starting to invest in real estate, whether its in Mahogany Lake or somewhere else in southeast Calgary, can be difficult. It’s a lot of money and could take a lot of time. Where should a beginner investor start?
We’ve worked with hundreds of investors in our career and learned a lot. If Mahogany Lake is your area and you like it as a potential investing community then start small. Always start small. Buy a condo or smaller townhouse. You will use less of your money and have less risk. This can be tricky on its own though.
When buying a condo or townhouse there are condo fees. HOA fees. Taxes. Insurance and miscellaneous expenses. You need to find out what the investment will net you at the end of the month. Will you profit or will you lose money? Losing money isn’t the worst thing…Touch on that later.
The math is simple. Take all your expenses like stated: HOA, taxes, condo fees, mortgage, insurance and anything else you will pay for the unit. Then find out the potential rents. You can do that on a site like rentfaster.ca or even Kijiji. Find an average rental amount for a similar type unit. Now just subtract the expenses from the rent. That will be your profits…or losses.
Now Mahogany homes can be tricky because of the large HOA fee and more expensive real estate. But even a small loss every month is okay on investments. Think of it like this. You pay into RRSPs or stocks or a savings account each month. This is similar. You pay into the home.
This won’t last forever. Over time you will raise rents with inflation or more. Plus your mortgage will be paid down. Eventually the small negative turns into a large positive.
Keeping Emotions Out of Mahogany Lake! 😊
Actually let’s just keep emotions out of investing…period. This is the toughest thing. We tell our clients as many times as we can that an investment real estate purchase is the EXACT opposite of a personal one.
Let’s say you are looking at Mahogany homes for sale and want to buy one. There are 2 scenarios here. Personal and investment.
Personally your Mahogany Lake home doesn’t have to make financial sense as much as an investment. You can be very picky. You can pick a home that suits YOUR exact needs even though people might not like a skate park in their backyard. But its for you so go wild.
As an investment it is totally different. The numbers mean EVERYTHING. It doesn’t matter if you don’t like the paint or the living room is weird shaped or that its on a noisy street. What matters is how much rent can you get and how much can you get the Mahogany home for. Profit or not?
Keeping emotions out can be tough but a good Realtor will help by steering you in the right direction? Trust in a good professional to find you a place that is a great buy and makes profit.
Pull That Trigger On A Mahogany Home
This is another tough part of investing. Let’s say you have looked at dozens of Mahogany homes for sale. You found the right investment in your price range. Many investors have a hard time pulling the trigger.
Its cold feet for the first time investor. It’s a lot of money. It can go sideways. The tenant might be terrible. The Mahogany home might lose value. And you are right all those things might happen. But that’s a part of investing.
Another thing might happen. You might make a lot of money and have a retirement vehicle that you can use to live a dream retirement. Is the risk worth it?
Yes. We think so. Let’s say you eventually bought 3 rental homes. The exact homes and numbers don’t matter because they always differ. Maybe they’re all in Mahogany lake? Wasier to manage.
If each home is paid off in 25-30 years and you start at 30. You could retire at 60. If you get an average of $1500 a month for rent times 3 is $4500 a month. Let’s say you use a property management company cause your old and don’t want the headache. Plus insurance and taxes. Let’s take off $1000 a month for all those expenses. A lot I know but why not. You have $3500 a month left. Can you live off that? Sure you can but we forgot about raising rents.
You should be raising the rent to keep up with the market. This is a business and you need to treat it like one. Be caring and compassionate with your tenants but it’s a business. Even if you were conservative with your rent raising. That $4500 would eventually be $7000 or more. Now you have $6000 to retire on.
Also the value of the house went up 2-3% a year (on average). And its fully paid. What a great retirement.
Conclusion on Investing in Mahogany Lake
Investing is tricky and can be stressful. But we know from our own rentals and clients that bought Mahogany homes for sale that it is totally worth it.
It’s one of the best investments you can make. Its relatively simple and if you do your due diligence on the Mahogany rental home and your tenants you should have no issues.
Think about the 2 years over COVID-19. A crazy and terrible time for humanity. But if you owned a home or 3. You would have made 10-15% on each on. $100,000 equity in your homes isn’t bad. Or even more. You never know when homes will rise. They do fall also but like the stock market always recover and then some.
Get out there and start investing your money in Mahogany homes for sale. Don’t miss out on the next jump in prices.