Is it a good or bad idea????

[Alex Deters]

Me and my wife are coming into $1 million here soon. We do not want to "work" full time. If it's even possible, would it be a good idea to buy a multi family, hire a property management company and just sit back and collect cash flow? I don't know if I'm being to vague but I've never invested in real estate but I find it very very interesting.

[Taylor L.]

Bad idea.

There are so many landmines for new investors making a big bet on their first property, particularly if they expect it to be zero work. I've seen many folks buy apartment complexes, throw a property manager in, step back, and expect the money to start rolling in. 

Then come to find months or years later that the PM did a bad job and the property is now in horrible financial condition. Sometimes those folks end up losing the property to foreclosure, sometimes they manage to get out and recoup at least some of their money. Either way, it wasn't the mailbox money they were expecting.

Step back, take $100 and buy a few real estate books. Make a multi-year plan and do not bet the farm on one deal. Learn about a bunch of strategies and decide how active you want to be. If you want to be totally passive, take some time to research syndication and decide if it's right for you.