Ask Paula - Should I Buy a Beachfront Rental Property?

#126: It's time to answer real estate investing questions!

Tom asks:
"We're thinking about buying a duplex on a beach in a popular vacation destination in Florida. If the property stays 85 percent occupied as a short-term (VRBO) rental at current rates, the income from one unit of the duplex could cover the costs of a 30-year mortgage.

"But if a recession hits, Florida real estate might tank. The rental rates or occupancy could drop. And we'd be stuck paying the mortgage out-of-pocket, which means we might not be able to retire. Should we take this risk?"

Rachel asks:
"Would you consider purchasing a beach house? Also, would you consider buying out-of-state?"

Alfredo asks:
"I own a couple of rental properties. I have to admit, my personal and business funds are completely co-mingled. I'm trying to separate these expenses, but it's a mess. If I hired professional help, how much might I pay?"

Anonymous from the Northeast asks:
"I'm gathering friends to invest. We live in the northeast, where home prices are expensive. I'd like to invest out-of-town. They'd like to invest locally. What talking points can you give me to convince them to invest out-of-state?"

Mitzi asks:
"Could you please explain the 1 percent rule-of-thumb around buying a rental property?"

I answer these 5 questions in this episode. Enjoy!

For more information, visit the show notes at http://affordanything.com/episode126

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