Robert Kiyosaki The Lazy way to invest in real estate.

[Ron T.]

Have some of you read this book? Is there new unique methods that we should know that aren’t discussed on Bigger Pockets? I’d appreciate comments or brief review.  I’d love to think there WAS a (Profitable) lazy way to invest in real estate.  
thanks 

Ron. 

[Ben Zimmerman]

Threads like these bring out people who are so ingrained in their beliefs that nothing you say will sway their opinion.

My mortgage is 950/month, 0 down payment, if I didn't own the house and instead rented, my rent would be 1600/mo.

Of that 950, 200+ of it is equity which is really just paying myself in terms of overall net worth.  So essentially I am paying 750, in order to save 1600 since I get no equity while renting.  Average appreciation rate in my area is a tad over 4% so as long as I don't buy and sell every 2-3 years to continually pay closing costs I come out way ahead.  You seem to believe that something isn't an asset if it doesn't make you money every month and cover its costs, but my home DOES make me money, it makes me 1600-750=$850 every month in terms of overall net worth, or 650 in terms of raw dollars per month flowing in/out of my checking account.  It all depends if you want to count your equity gain immediately or not.  Either way its a significant win.

Your personal home is your BEST rental property you will ever own assuming you don't buy some overpriced McMansion.  You are simply renting it to yourself.  It comes with the lowest interest rates possible, a perfect tenant with 0% vacancy rates, a near 0 yearly maintenance cost since you take good care of your home and can easily repair most simple items yourself, and no property management team necessary.  

Opportunity cost is a legitimate cost.  If I wasn't paying this 950, I would instead be paying 1600 and not getting any equity either.  But hey, if you want to keep thinking that your home is not an asset then by all means you are entitled to your opinion, I have several properties that you can rent from me if you are so excited about renting instead of owning.

- Original Cost to buy (A homes price isn't predicated on it's use, if I buy it as a rental or for my own use it still costs the same amount)

- Down Payment (owner occupied homes require significantly less down payment)

- Loan interest rate and term in years (owner occupied homes have a much lower interest rate)

- Rent (will always be higher than your mortgage amount unless you live in a stupidly overpriced area like NYC, SF, ect.  The overwhelming majority of the population their mortgage is significantly less than a comparable rental would cost)

- Monthly expenses: Utilities, taxes, insurance, cable/www, any REHAB you did, Landscape, Lawn/snow per month, misc expenses. (I pay utilities, cable, internet etc regardless if i'm renting or buying, taxes and insurance are already factored into the mortgage payments, however if you are renting then your renters insurance will be in addition to your monthly rent.)

- Appreciation rate per year (You don't get any appreciation if you rent, so unless you live in a dying town with negative appreciation rates then owning wins)

It looks like you struck out Joe, each of the items you listed favors owning instead of renting.  30 years from now I will own my home outright and will have saved hundreds per month while experiencing nice appreciation.  After 30 years of renting all you have is an empty box of kleenex after wiping away all of your financial tears.