I am currently living in a decent two bedroom apt that is one of four identical units in the building, two upstairs, two downstairs. Two attached two-door garages. Maybe I am crazy, but I think that it could be a wise investment to try and buy the property owner out. She lives quite far away, and I think that I could make money off the place. I dont know the exact property value, but I am guessing somewhere betweeo $100,000 and $200,000. If it is anywhere near 2k, I would be surprised.
First off, how do rental property owners value their property? Actual value of building and property, or as a matter of income potential from rental fees?
Now ill put on the flame suit and tell you the part that you might not like. I am 21 years old, and I do not have much on my credit report, nor do I have any existing loans in my name. If I bought out this place, I would want to do a somewhat long-term mortgage, at more than 15 years, the rental income would pay the mortgage payments, all expenses, and leave me with 800 or 900 a month in pocket. The building is in good shape, but I would of course want an inspection done before hand to see if there are any foreseeable major repairs that would need done.
If I tried to apply for a mortgage, would anyone even take me seriously? Or will I just get laughed at when they see my age? I am a college student, and I think that in my future I would want to own several rental properties as an investment, its the only market that I see as being reliable (people gotta live somewhere).
Your comments would be appreciated.