$300 income?

[Alison Michel]

Hi BP,

A friend and I got into a discussion about real estate investment. Neither of us have made our first purchase yet, but are both looking to soon. I told her about an investment potential that would result in $300/month income (assuming my numbers are right). She thought that seemed like too small a return for the trouble. She was also concerned about the neighborhood where the property is located, and thought it was bad for the local economy to be an outside investor rather than encouraging local homeownership. She is looking for a larger property in an area that is more likely to increase its value over time because of its location. I argued that if I'm a fair landlord who maintains the property well, that is good for the neighborhood, and that making $300/month for a property that is managed by a property manager is a good start for my own REI business. What do you think?

Thanks!

Alison