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Re: Researching the Biz.... Advice for potential L
by Ken Bob
on May 27, 2002 @20:01
I think you're asking a good question. Unfortunately, the
answer isn't very clean or clear. Volumes have been
written on real estate investing; I have yet to find one I
was impressed with.
The short answer is: yes, you can make a living owning
and managing rental properties...but you won't be living
off of a couple of single family homes unless rich
relatives leave you a couple of strategically located
mansions and you can accept something simple in the
When you work up to 20 single family homes flowing
$100.00 a month, you may begin to see some potential.
There's certainly nothing wrong with that, and I know
several individuals that own 100+ properties that do
20 duplexes may flow 2x or 3x that amount early on.
The more units per property, generally, the more cash
flow; that's why apartment complexes exist. Your only
problem will be coming up with the resources to form
your company and buy the properties.
It's hard to get started. If I were starting over with
nothing (my condition in and just after college) my first
house would've been a duplex (or quadplex if I could
swing the payments on my day-job paycheck) and I
would build from there. I would live in half and rent out
the other unit(s).
If you buy right you could be flowing positive cash right
away, but it will be important to form a company to own
the property so that all ownership costs can be
candidates for depreciation and deductions against
Like I said, there's no simple answer that I have found;
but don't be discouraged. It's far better to own a little
place that's paying for itself and building equity than just
about anything else you can buy. Of course, it all
depends on your greater goals and plans.
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