Quote:
Originally Posted by Smokin Gator
OK... I am feeling generous tonight and will share a family secret... and I am serious. We buy properties that we can rent. Our rule of thumb is to be able to charge a monthly rent of 1% of the purchase price. If you do that the property should pay for itself in 7-10 years depending on taxes, insurance, and upkeep. You may not have any cash flow for a while, but before long you have a bunch of properties with cashflow that was paid for by someone else!!!
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What this gentleman said.
Government spending is scary. Invest in stocks and funds because its beneficial tax-wise.
Unless you've got a lot more in your piggy bank than most college students, precious metals are out because of the historically high spot prices and trading costs.
Real estate in many areas is in the dumper, and mortgage rates aren't too bad. Pinch your pennies, ditch your debt, and get into rental properties. Learn to do the upgrades and repairs yourself and save some money. Also, spend A LOT of time researching your area. In many cities, there are certain areas which provide affordable buy ins (good for you), fairly new homes (lowER maintenance), and appeals to the proper renters.
I'm not too many years your senior, and my brother and I have done well in a nicer area around a large public university which caters to junior professors with short term contracts. You have a responsible tenant with good cash flow who spends 90% of his/her time working. The rent covers the expenses (thus building equity for us) and provides a very modest income to buy us a few beers a month to celebrate.