Advice please on purchasing real estate as a passive income during retirement. We are both 50 years old and would like to start buying properties to rent. We are looking to first buy in a high tourist area near us as a seasonal rental property (for skiers in the winter and summer tourists) and need experienced investor and property owner advice. We also downsized considerably and would eventually like to rent our newly built home (we plan to hire a custom builder to build a small, better quality home than our current home) and move in a few years. Our current home is located in a highly sought-after area for rentals. Here are my questions:
1.) Should we wait to buy for a better buyer’s market for our first rental in the tourist area? Tourism is extremely high right now and are unsure if the market is good or bad for these types of properties (we are not doing a time-share- looking to buy a small rental condo or cabin) to rent out at various high tourist times and also stay in the property as a second home on some weekends. Right now it is a cash buy market for where we want to buy. We have 80K saved.
2.) We have no real estate management experience. Should we use a management company in the beginning, at least until the property is mostly paid off? My husband is an attorney- he could definitely do the legal side of rental management- I’m just not sure I want to deal with the people side of the showings. Any way to hire a real estate agent to handle the showings for us for a fee?
3.) How long or how much of pay down on our current new house should be at before turning it into a rental property? We bought last Janurary 2021 with 10K down and our house was a good deal with the builder (they are building the same house in the area and the market has already increased on our exact house value by about $25K-per the houses they are selling this last spring and right now) due to the housing shortage in our area. Currently, we are up on the value but obviously, this could change over the next few years. Rental properties are at a premium right now because of the shortage of homes to buy and rent in our area-this will most likely not change in the next few years as our state has had a housing shortage for over a decade and has few home builders in our region. Should we be looking to pay down as much on our mortgage fast and how many years before we can rent it? Is there a financial calculation, that would help?
4.) Should we buy our land now and start paying on the land for our future custom home now?
5.) Should we look at investing with new home builders instead of in rental properties?
6.) Any other advice?