Re: Researching the Biz.... Advice for potential L

Re: Researching the Biz.... Advice for potential L by Ken Bob on May 27, 2002 @20:01

Randy B. 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 suburbs. 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 very well. 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 income. 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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