how bad can it get? Let me show you!

[Patrick Britton]

Do you think it's appropriate to place a tenant whose primary source of income is from new memberships of a multi-level marketing company?  What if the tenant destroys the air conditioner, let's say with a hammer, and then demands that a new one be installed at someone else's expense. Is that fair? 

Is it reasonable to cost $300 to change an electrical breaker, that I could do myself for $25?

Is it reasonable to spend $200 on lawyer fees trying to fight a tax bill you never asked to fight?

Seriously, this is an absolute joke.

If you have to invest in real estate (and at this point I would advise anyone not to) buy a house in a cul-de-sac in a subdivision in a good area with good people. Don't try to be fancy or smart or clever and try to take advantage of a minor imbalance between risk and reward. Buy quality.  

Stay away from all those neighborhoods that are not a B plus rating. there is a risk associated with bad neighborhoods that cannot be quantified on an excel spreadsheet.  

[Steve Vaughan]

Quote from @Patrick Britton:

Do you think it's appropriate to place a tenant whose primary source of income is from new memberships of a multi-level marketing company?  What if the tenant destroys the air conditioner, let's say with a hammer, and then demands that a new one be installed at someone else's expense. Is that fair? 

Is it reasonable to cost $300 to change an electrical breaker, that I could do myself for $25?

Is it reasonable to spend $200 on lawyer fees trying to fight a tax bill you never asked to fight?

Seriously, this is an absolute joke.

If you have to invest in real estate (and at this point I would advise anyone not to) buy a house in a cul-de-sac in a subdivision in a good area with good people. Don't try to be fancy or smart or clever and try to take advantage of a minor imbalance between risk and reward. Buy quality.  

Stay away from all those neighborhoods that are not a B plus rating. there is a risk associated with bad neighborhoods that cannot be quantified on an excel spreadsheet.  

Sounds like a crummy PM in a less than B area isn't the way to go. 

I self managed until I got tired.  Then values became too high and cap rates and ROE too low not to sell most.  OK to grab a chair. 
But I wouldn't be so down on RE itself.  I'm looking at other things mostly now but RE will always be what got me off the wheel long ago.  

Screen better, get a better PM and or self-manage.