buy and hold strategy

[Robert Uceda]

Okay, I have put in the sacrifice of counseling addictions treatment for over a decade and honestly am not fond of subjecting to this slavery any longer.  Tired of working for a boss who may have other agendas. I have been researching and attended real estate club meetups for the 13 months.  Have a decent credit history, have 37k in retirement fund, and have connections to end buyers thanks to another peer of mine.  Having spoken to another real estate agent, he suggested I consider buying a property, live in it for a time, and rent it out to tenants to build a stream of income.  However, wouldn't that stream of income go towards a private lender (bank) since I would have to put 20% money down payment and the 80% give or take would originate from a lender?  Would I still profit in the long run, if I were to rent that house to tenants??   Suggestions? 

Rob

RE investor at Denver, CO

p.s. very well aware of the scarcity of house inventory in Colorado market, read at 5280 magazine, among other sources.  A seller's market for now.

[Rick Pozos]

@Robert Uceda, it seems like it would be that easy right? Well...real estate investing is not quite that easy.

The theory is. Buy a house, rent it out, make lots of money. 

The problem is that you have to find a house where someone is in a bad situation so that you can buy the house at a below market price. This is called finding a good deal. When I say good deal I mean like at 20 to 30% below market price. When you can find 'good deals' on a regular basis, you are set.

Going to some REIA meetings will get you in the mood to invest, but get some education. Read some books on the real estate investing. Read about marketing. Read about sales. Get familiar with what it takes to be an entrepreneur. Then you will be ready.