I’ve been doing some pretty heavy reading about a couple areas of real estate and I still can’t freakin decide which one is most profitable for my time
(at the moment I make good money doin somethin else and I can do it whenever I want)
How do these generalities stand?
Rentals- Good long term wealth, just get + cash flow. Lot of work with tenants though. (good book propertymanager, keepin it real!) But you have to own sooo many to make a worthwhile realized profit or a profit worth your time. What is a realistic monthly profit on SFH? 100-200 bucks?
Apartments- Rentals on steroids but higher vacancy and less quality tenants. Lower on maintinence though. Selling them off is not easy.
Short sales- ??? Haven’t read a page about these. Fill this in if you want.
Flipping- High stress and needs lots of experience to do right. A little riskier, but can payoff huge.
Lonnie Scruggs mobile homes- fastest way to get cash, low investment. Lots of trouble with getting your money from the buyers but their lack of cash is why the sellers are so persuaded to sell at 50% fmv.
And all of these make MOST of their money in a discounted purchase price, which is acquired by finding a desperate seller. This is by far the biggest determining factor in the scheme of making money in real estate.
Also I have heard it is wrong to assume that the market will eventually go back up. Rentals seem like a good idea (+ cash flow of course) because I would attain so much unrealized equity when the market goes up and I own 20 properties, but I don’t know if I can make the assumption. If you look at a graph of the supply and demand of housing it seems like it’s bound to go up within the next 10 years for sure.
Summer is coming up, I need a plan!!
The more I think about this stuff the more each of them becomes “meh”. I really need to find a lead here and get started. I got a summer and 50k, help!! School sucks and I don’t have a plan for any awesome job like a doctor or something, so I would love to generate 70k/year+ in real estate.
Please any thoughts or comments encouraged. Also include any whole areas of real estate I missed.