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Originally Posted by Isaac Zachary
There comes up the question if there are better ways to invest. The stock market doesn't bind you too a fixed sum every month and can be more profitable with less work.
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Of course. This assumes one wants to invest in real estate. Most family's largest investment is their home and they are investing in real estate whether they realize it or not. Your personal home can lose huge amounts of value - just ask anyone that lives in a town or city where the primary employer leaves and is not replaced
Quote:
Originally Posted by Isaac Zachary
Of course it would be wise to not put all your money into just one thing because if that one thing goes south, there goes your money.
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Yes, diversification is key. Which is another reason not to make a huge stretch to buy a home in an expensive metro. I know plenty of people that are so stretched on their mortgage they have no money to invest in anything else up to and including not investing in their 401K to get a 100% match
Quote:
Originally Posted by Isaac Zachary
Also, who would be a good renter, or good at making money from renting? From what I'm hearing, you have to be the kind of person who says "no!" to a single mom with three cute kids or "no!" to an old lady who's only companion is her dog and instead rent the place out to a bunch of college kids. Why? Because the college kids are statistically less likely to damage the place than the kids and the dog and are much more likely to be able to pay the rent than the single mom or the widow.
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Which is why you hire a professional property manager that knows the ins and outs of the business. The first thing our manager did was raise rents on our property from $550 to $700 a month to match the market in the area.
One side of our duplex has a family of 5, the other a single mom with a kid. No pets though - no way / no how.