Houses aren’t glamorous like shopping malls and high-tech commercial buildings but they are far better suited for an investor who starts with very little cash and no reserves. Most investors and “wanabees” are better off to stay away from strategies that sound slick. Over the past 10 years, I can recall the names of at least a dozen so-called investment gurus who expounded the virtues of a wide assortment of “get rich” techniques. Most of these pitchmen are bankrupt or working at a burger place today.
When you own the houses, you have your own personal money machine! Obviously, you must maintain the property and provide the necessary management, but in exchange for doing that, you control the money. It’s yours to spend any way you choose. The basis for wealth behind nearly every rich person can be traced, back to the ownership of income real estate.
Nothing comes ahead of cash flow! When you have it, you can continue to grow. You can transition from smaller properties to larger ones or fixers to pride-of-ownership. You can use your cash flow to buy mortgages for passive income or take a trip around the world. Cash gives you choices! In terms of investment risk, rental I properties are about the safest kind of investment you can make.