Any advice on a real estate rental investment would be appreciated:
these are my scenarios:
low end:
purchase house/duplex requiring minimal aesthetic upgrade - essentially turn key tenant ready. Mortgage covered with a small monthly cash flow in lesser area.
mid range:
house or duplex in better area with a higher %age annual value increase. Minimal aesthetic improvement required. Potential for legal suite Reno. Mortgage covered only but banking on better annual value increase.
higher end
brand new house with built in legal suite in nice growing location. Nearly all my down payment used, mortgage covered with minimal monthly cash flow. Value increases in this area are already significant in the last couple years.
the catch:
my down payment is based on a borrow on equity from
my current house.
location: Vancouver island.
i am experienced and capable of any type of Reno work outside of elec, gas, plumbing.
i feel the higher end is a bit of a gamble in assumption the market will continue to increase and nearly all of my available funds will be wrapped up. But the other edge of the sword is I'm concerned the market will increase in the better area if I wait and therefore price me out.
there is obviously so much more involved than this summary, but anyone current landlords out there???? Advice?