In Texas, Considering getting into Real Estate! Advice Requested

[Jason Schmidt]

A lil background on me - I've been doing websites for over a decade, got burned out, so am not pursuing it hardcore like I have been, so have been doing something else I've been enjoying, and that is buying/selling collectibles. I've even gotten into buying/selling cars here and there.

I am married with children, have no debt, monthly expenses of about 3k a month, and about 150k in the bank. I am not looking for a high stress situation, but am wanting to somehow get into real estate to the point of where it can provide me at least a decent partial income.

Question to you is: What would you do? I'm in Texas. Where/how do you find deals? Please, any advice would be greatly appreciated, while I continue to immerse myself in the forums here. Thanks!

[John Evan Miller]

Flipping houses requires constant attention to keep the income stream coming in. Rental properties will generate a steady stream of income but can have more headaches. These can be reduced by making sure that you get good tenant.

I personally would recommend investing in discounted single family residences. Here is why I think it works in this economy.

1. Distressed properties (Foreclosures, short sales, REO etc) are readily available and are being sold for cheap.

2. Because of the restrictive lending requirements, loans are hard to get forcing many people into renting. If given the choice, people like renting homes more than apartments.

3. As the economy improves and lending requirements relax a little, these renters are going to want to buy.

4. As demand increases and the economy improves, so will real estate prices.

Research indicates that, if done properly, the yields will be between 15 - 20%. I estimate the holding period to be no longer than 5 years.