When you don’t have a lot of money …and you need cash flow rather quickly, you must invest in the kind of real estate that will produce it. Single houses can produce it someday…but not until the mortgages are paid! If I was lucky enough to earn $100 per house, not likely with a mortgage, I’d need more houses than I could ever afford just to earn pauper’s pay. Fortunately, there” faster, better way!
The better way is to start with fixer-uppers first and concentrate on cash flow. With fixer properties, you can force the value up with sweat equity (yours or somebody else’s). With fixer properties, you won’t get stuck in a holding pattern, waiting for appreciation or a turn-around economy, this is very important, if your goal is to create wealth during your lifetime so you can enjoy it yourself!
I can tell you from experience – buying the right properties, in the right sequence, makes all the difference in the world. If you’re like me, cash flow is always the biggest concern! It took me several years and some seriously overloaded Visa cards before I gave up the notion that average three bedroom, American dream houses would set me free! They almost broke me instead! Don’t misunderstand me here. I’m not saying they’re not a good investment. I’m saying they don’t provide any cash flow! My dream was to be a full-time investor and have my real estate support me. What finally saved my bacon was when I started buying the kind of properties that would earn enough income to pay me every month. That might not sound like much to some folks, but to me, It was the discovery that kept my investment career alive.