Okay, so unless you have lots of money, you cant rent and create wealth.

Basically, if you finance anything more than $40,000 you cant make cash flow unless you have over $700 in rent, which if you own a house that rents over $700, then you must have put alot down…right?

We bought 5 homes for $50K each in the hood and we are renting them out at $1500 per month and doing real good.

It’s harder to make things cash flow as house prices go up because the associated rent with those houses doesn’t go up linearly with the purchase price. Investors are going to make the numbers work or not do the deal. They may not have put down a huge amount, but they’re only going to buy the properties that will likely make money. In one of the neighborhoods where we own two houses, there were five others for sale last year. While we would have loved to increase our presence there, we couldn’t justify buying any of them because those houses went for 25-35% more than ours and the rent would be the same.
So maybe 40k houses for you are renting for $700. You’re job is to get them cheap enough where they will cash flow.

At this time we are buying cheap homes in the hood and renting them out and making money.

If you leverage you money with a Hard Money Loan, you can buy smart investments for less than $10k out of pocket.

Chris Jameson