Quote:
Originally Posted by GregWeld
Smart Mike! We all know that housing went UP too much and came DOWN too much. While you might have missed the very bottom - they are still relatively "cheap". Interest rates are cheap and won't stay that way forever. The key is positive cash flow!
I personally like to invest in LLC's that are professionally managed and own class A apartments. They typically pay a 7+% rate (taxable - but offset with depreciation). And in fact I'm now looking at a mixed use building with 48 units and a 30,000 square foot retail rental (long term leased)...
Rentals like houses and apartments are LONG TERM guys --- they tie up your cash -- and have relatively large buy and sell commissions --- so aren't something you can just flip out of. However, they have nice long term capital appreciation - come with some nice taxable incentives - and can spin off great cash flow that generally increases over time. Be prepared for a 7 plus year holding period.
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Thanks Greg.
Yes I am prepared to hold Long Term and these places are really Cheap...
But at those prices and the price I can rent them for, it is a no brainer...They are "cozy" a.k.a. small homes...
I am a small Fish so I need to stay with small rentals...But positive cash flow is the name of the game..