I've got a situation about real estate investment and if someone is willing to help I would be very grateful.
So I live with my parents as they're never home so it doesn't bother me nor them.
I own an apartment that is estimated to be worth 200.000€ that I rent out and I've got 50,000€ morgage left. I pay to the bank about 6000€/y.
My situation is that I've been thinking about selling it and buying smaller apartments to rent out (which in here where I live you get a lot more rent against price out off).
If I sell the apartment I own I'll get 150,000€ cash as we do not need to pay taxes for profits from apartments. I don't know how it works in the States but I just want to point that out.
I went to the bank and they offered me a loan for a new apartment with a 15% downpayment (fixrate 25y) and that I would also need to put a part of my old apartment as securities. That's not good for me since I would like to just pay 15% and not use my old apartment as securities.
So I though that if I sell my old apartment and make 150,000€ then with that I'd go to the bank and ask for 5 separate loan for 100,000€ each and pay 30% of each loan as downpayment (30,000x5=150,000) and if that would be enough to secure the loan.
Then I would rent out 4 or the apartments (one of them I'd move to) so that I the rent would pay for all the expenses (loan, housepayment, taxes) and I would not need to pay anything out of my own pocket.
I know for a fact that in my country if you rent out a studio apartment then it's possible to ask enough rent to pay all expenses. Specially if 30% of the loan is already payed for.
After a few years when the rents would go up I would even earn a few bucks per month, but that's not even important since it would be so little.
So what do you guys think? Does this sound reasonable? Would this be smart?
If you didn't understand what I mean I can try writing it more clear. English isn't my first language.
So I live with my parents as they're never home so it doesn't bother me nor them.
I own an apartment that is estimated to be worth 200.000€ that I rent out and I've got 50,000€ morgage left. I pay to the bank about 6000€/y.
My situation is that I've been thinking about selling it and buying smaller apartments to rent out (which in here where I live you get a lot more rent against price out off).
If I sell the apartment I own I'll get 150,000€ cash as we do not need to pay taxes for profits from apartments. I don't know how it works in the States but I just want to point that out.
I went to the bank and they offered me a loan for a new apartment with a 15% downpayment (fixrate 25y) and that I would also need to put a part of my old apartment as securities. That's not good for me since I would like to just pay 15% and not use my old apartment as securities.
So I though that if I sell my old apartment and make 150,000€ then with that I'd go to the bank and ask for 5 separate loan for 100,000€ each and pay 30% of each loan as downpayment (30,000x5=150,000) and if that would be enough to secure the loan.
Then I would rent out 4 or the apartments (one of them I'd move to) so that I the rent would pay for all the expenses (loan, housepayment, taxes) and I would not need to pay anything out of my own pocket.
I know for a fact that in my country if you rent out a studio apartment then it's possible to ask enough rent to pay all expenses. Specially if 30% of the loan is already payed for.
After a few years when the rents would go up I would even earn a few bucks per month, but that's not even important since it would be so little.
So what do you guys think? Does this sound reasonable? Would this be smart?
If you didn't understand what I mean I can try writing it more clear. English isn't my first language.
