Daily Archives: May 16, 2012

Entertaining the Thought of a Rental Property

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A lot of PF bloggers out there either already own rental property, or are looking to invest in a rental property.  Owning a rental property has been something that I’ve always considered.

Background

Back about 5 years ago, when I was still a student, I befriended my land lady, and she advised me to own real estate as soon as I was able to afford it.  She also offered to share her experience and help me out with getting started.

A month after I started my full-time job, we got together for dinner and I raided her brain on what I needed to know to get into the rental market.  I walked away from our conversation excited and scared stiff.  At that moment, I really wasn’t ready to take the risk that came with owning a rental property and the real estate market.

But I also came away with it knowing that in order to make anything happen, I needed to save money.

My PF Journey So Far

Shortly after my meeting with my land lady, I started to think more about where I wanted to be financially.  Even if I couldn’t get into the real estate market, I wanted to figure out my finances.

I paid off my student loans, and started to read PF blogs.  I learned about investing and what an RRSP and TFSA were and maxed out my company match every single year. I learned to track my expenses (using this awesome tool!) and started my own PF blog to share my journey and keep me on track to financial freedom.

Why I am Thinking About a Rental Property

I’ve spoke with quite a few individuals who currently own rental property. I asked them about how they do it, what they look for, and I’ve had pretty positive feedback.   These are individuals who do their research and take a calculated risk when they think it’s worth it. It seems very do-able.

As you know from my monthly budget recaps, I spend very little money on rent, every month.  Especially for living near the city!  I try to have a bit of fun, but also funnel extra money into my investment and savings.  It took me  a while to get comfortable with buying RRSP, and TFSA for my investment portfolio.  I was so scared that I would lose all my money!

With a rental property, I’d approach it the same way.  Similar to how I approached my investment portfolio, I want to do my research first, so I can make a decision that is within my risk tolerance and comfort level.

What are your thoughts on investing in rental property real estate?  Do you have any experience owning any rental property?

Cheers,

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