I was talking to my successful investor friend yesterday, whom has over 80 properties and she said that generally the purpose of renting houses to to capitalize on the appreciation over time of the property, not so much the monthly cash flow. She said that some do it, but not many. She also said she did not really use HML very much.
Is it possible to rent for the cash flow IF you compensate using the 50% rule? Anybody on actually do it here do it?
Is it hard to find property managers for Section 8 rentals?
What “grade” of investment properties does your friend own? Maybe she owns in blue collar type neighborhoods. In lower income areas, you’re probably not going to get much price appreciation so you’d better get good cash flow. My wife and I invest in lower income areas. I could really care less if the houses are worth 50% more than they are now 20 yrs down the road. We have our business set up to cash flow well so we’ll have enough money to cover all expenses and still make money. If you have any specific questions about this type of investing, let me know. I can either post more detail on here or I can PM you.
I suppose if you pay enough, you can find someone to manage anything.
You can set up a real estate activity for cash flow, for profit, or for neither. Depends on your investment criteria.
I disagree with your friend. As a general rule, experienced real estate investors don’t buy rental properties. They buy the cash flow the property generates. They are not buying the property expecting future appreciation. They buy the property for the cash flow the property can generate today.
Make a mistake, pay too much for the property, and you don’t get a positive cash flow. If the property does not appreciate, then you are in a losing position. I suggest you invest in rental property that generates a positive cash flow. Appreciation is just gravy if it happens by the time you sell.