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 all that, you can control the money. It’s your to spend any way you choose. The basis for wealth behind nearly every rich person can be traced, back to ownership or a patent, a copyright or a deed! (please re-read last sentence).Owing income real estate puts you in with the right crowd. Houses aren’t glamorous like shopping malls and high-tech commercial buildings but they are far better suited for investors, who start with very little cash and no reserves.
In terms of investment risk, rental properties are about the safest kind of investment you can make. Residential renters are easier to attract than commercial tenants. Houses are considered a basic necessity of life. The risk of loosing your investment houses, with any equity, is almost nil. Buy them right and structure the financing so your tenants can pay them off and you’ll be very well rewarded for your initiative.
Most investors and “wannabees” are better off to stay away from strategies that sound slick. Over the past 30 years, I can recall the name off 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 gas station today.