guys i have 100k and have been looking at a lot of real estate

you can put 1 yearly dump of money into a house interest free. (where i live, probably the same where you live)

>buy house
>have tenants pay mortgage/slightly profit you while you work a stupid amount
>end of year dump a huge amount of cash into the house
>repeat for a couple years, you now own a house.

Real estate team admin here. We work with tons of investors.

Look for double lot 2/3 flats that have 2-3 units on each floor or converted single families that have 2-4 units in total in middle class neighborhoods. If you're around a city, look at the suburbs.

Buy a little cheaper, find a buddy contractor willing to do any work a little cheaper, etc, etc.

Friday we sold a $210k 3 flat with 6 units to a regular investor. After the inspection he figured it'd need about $40k in work in total, was in a middle class neighborhood, and he was expecting about $6000 a month in rent.

>>987755
was thinking of doing this acutally. just try to pay off houses one after another , then get rent cash flow mortgage free.

do this 10 times and retire

>>987761
thank you - this method is more work but makes more money if done right.

>>987746
The key would be to find housing that is under a certain cost for square footage versus what your return per square foot is. I have noticed one trend is for housing to be available in the sub 20k range. At that range even if you were to rent out a 1200 sq ft house for 400 a month you would be break even in 4 years and after ten would be doubled on your investment if you didn't find some alternative way to profit. You might have to deal with bad tenants, but then again if you price the rent low enough suddenly you have enough potential tenants where you can be choosy and aggressive with your renters.

>>987761
This may work if you are dealing with a property management company, maybe.

Big issues I see are that the tenants are likely to be lower income and high density tenants. High density tenants are usually motivated by space to price ratios and will bring more people than they state they will and will do more damage because they view their existence as transitory.

At the level they are talking about it will usually require a business license as you are dealing with commercial residential which also may mean you need to pay for onsite management.

>>987761
6k a month in rent sounds a little steep for a flat

>>987786
6 units, 250 a week will get you 6k a month

>>987798
And the entire group of units cost $210k?

>>987798
Can you post a picture of what type of building he was talking about? I've never heard of this building arrangement before. My family rents houses out but they're all single family homes.

>>987746
wait for the housing bubble to burst

>>987804
This. That seems cheap.

>>987808
im in houston - i feel like with oil prices depressed, the prices aren't that inflated; especially in certain areas

>>987828
on the other hand maybe i'll just pay down my current mortgage.

its FMV is 325 (bought at 290); and i have 200k in mortgage, and 100k in hand.

>>987804
>>987807
Not going to post a picture of the exact building but this one is just like it. Typical flat multi units around Chicagoland.

Tenant's income is lower than in the city (typical 1 bed will run $1500-2000 a month). But at $1k a month in rent per unit give or take the building can generate a decent amount of revenue. The trick is to understand that you are halfway to slumlord with these types of properties.

Here's a couple more examples:

http://www.realtor.com/realestateandhomes-detail/3014-Houston-St_Franklin-Park_IL_60131_M75970-18870

http://www.realtor.com/realestateandhomes-detail/3033-Ruth-St_Franklin-Park_IL_60131_M74356-46821

A good thing is that with properties like this normally each unit is a 2-3 bedroom.

File: LIMG129425338rad932AB.jpg (105KB, 960x720px) Image search: [Google]

105KB, 960x720px

>>987904
forgot pic