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Old 04-19-2006, 07:56 AM
kaweahnet's Avatar
kaweahnet kaweahnet is offline
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Location: Brentwood, CA
Join Date: Jul 2005
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Mein Auto: 2006 ///M Roadster
Originally Posted by Moderato
What about the cost of maintaining the home and fixing problems & damages? What about the months were you don't have the house rented and need to pay that bill out of pocket? What about when your tennants don't come up with the rent money? Laws make it hard to kick people out. It's not as easy as you make it sound, IMO.
Nothing is perfect, and at times my rental properties and their tenants can be frustrating. However, as stated earlier, if you keep your day job then the occasional $1k-$2k per year will be tolerable. But even then ... you usually make up for it at tax time. Keep in mind ... this is ONLY cashflow we're talking here. If you shop well, research markets and buy at the right time I can almost guarantee over a 5 year period you will show a positive cash flow (all things considered such as poor renters, repairs and taxes). It may not be much, but cashflow is something you don't even talk about with 401k or IRA's.

Even, if you really screw up your buying decision and renters are in and out ... you still have the appreciation of the property. Don't get me wrong, I've seen people screw up real estate by not researching markets. But that is because they didn't do their due dilligence. It's not free money by any means, and it takes more work than throwing it in your 401k ... but it is much more lucrative. The best part is, if you start real estate investing today, in about 5-10 years you will be receiving good cash flow off of your properties and have a nice nest egg for the future. But, as I stated earlier, it does take work.

IMHO ...
- Dave
2006 BMW ///M Roadster - Premium/Nav - Triple Black (Mine)
2004 BMW 530i [E60] - Sport/Premium/Naviation (w/slushbox ) SilverGrey/Black (Wife's)
1990 BMW 525i [E34] - (Daughter's)
PREVIOUSLY - 2003 BMW Z4 3.0i
"Happiness is a garage full of bimmers!" (and a couple of go-karts)

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