Quote:
Originally Posted by SSLance
Everyone I know that got into the rental home racket has either claimed bankruptcy and lost them all or is still holding onto them and dealing with tenants daily because they can't afford to sell them.
This is where all of the accounting classes I took in school helped me to avoid certain investments...
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I have a few commercial and residential rentals/leases, and feel like they are solid investments. The trick is picking your target market. I will only buy 30-50K brick or block homes in "the not so good areas". Although I buy them outright, my strategy is they pay for themselves in 2.5-3 years. I invest very little in them for upkeep, pay little to nothing in taxes, and rent them through the section 8 program. I'm guaranteed my money, my tenants will never leave, and I get above average rent for the areas they are located.