Quote:
Originally Posted by jay santos
Throw in negative cash flow on rent, maintenance/upkeep, and selling costs and that takes your profits down. You'd also be making a 1 in 1,000 decision to know exactly when and where to buy and when to sell. Nobody, including the most adept real estate investors can predict this. Of course, the Google example is the same kind of luck, but you make you case as though this happens all the time in real estate.
I bought a rental with hardly anything down, fought a negative cash flow for six years, hell with renters, finally got out of it for barely what I had into it because I was facing a balloon payment. I guess I wasn't meant to be rich.  |
Ok, I'll bite. Don't buy with neg cash flow, don't sell,don't do a balloon loan, just re-fi, hire good mgmt, and check areas that are good to invest in. Try any of these in the past and you win HUGE. Calif in most decades, St. George in 90's, Casa Grande AZ in 2000, Bend Ore last 5 years. All made OVER 100% increase in value in 5 years or LESS. If you put $10K down on any of them , when value doubled, you increased your 10K to 100K. That is leverage my friend, and many are doing it RIGHT now, like me. Over last 49 years, the annual avg PER year is 6.34%. If you want to not pay taxes legally and create wealth, real estate is your best choice, period.