Personal finance question. Advice about real estate and renting.?

I got accepted into a Physician Assistant Program for Undergraduate. I know that they make about 80-100k if I go into surgery. I would be 23 when I get my BS and Masters in Physician Assistant. I am thinking of saving money for two years and buy a two family house in my area for about 500-600k, since two family houses are expensive and get money off the rent when I am 25. Then I would use my previous house which my parents would give to me and convert this to a two family house and make a profit since the rent income would be higher than the mortgage(this is for the first house). But I am actually wondering more about buying my second house. I want to gain lots of money off the rent from my two houses so that I could buy a luxurious one family house when I turn about 32 after saving lots of money and then living a nice life. What do you think? Please give me any advice. Remember, I really want to use real estate as a big asset to me. Thanks.Personal finance question. Advice about real estate and renting.?
Well, for one, you are not going to be making ';lots of money'; off of a two unit in that price range. After your mortgage and income tax payments I doubt you will even break even.





The other problem is you are assuming you can convert a home into a 2 family easily. You can not, not unless the zoning is already MFH, not SFH.





While you are working out the numbers do not forget the gift tax you will be owing on the house your parents are giving you, it is going to be killer.Personal finance question. Advice about real estate and renting.?
first,, you have a good plan,,second ,, you need better advice than your going to get in here ,,set down with your bank and ask the same question of their financial advisers ,,they are the ones that will be handling the money for you
I hate to be the bearer of bad news, but being a landlord is no fun and it usually doesn't make you rich either. It is a long term investment, meaning that you would have to have paid for properties before you really started making any money and that takes about thirty years. You have to deal with tenants and they usually don't take care of YOUR PROPERTY. Then there are repairs that can be costly, eating up more of your profits. Basically what you would be doing here is paying off interest on a mortgage and never even touching the principal and you would not really be making any money, all you would be doing is paying the mortgages and giving yourself a HUGE HEADACHE. I did an analysis on some properties that someone I know owns and figured they were making $2,000.00 a year per property and they owned three properties. For $6,000.00 a year it isn't worth the headaches you go through with the tenants.





I actually found a web site that calculates this for you. Here is the site, you put your numbers in and figure it out.





Ohh and by the way I have worked in accounting for 27 years, have a college degree, and used to own apartments.





If you haven't heard this before, THERE ARE NO GET RICH QUICK DEALS IN LIFE. IT ALL TAKES HARD WORK.

sunscreen