keith, i did what your talking about...i was able to buy 3 three family properties this year...it is working out because i bought for cash flow...my equity in my own home was not working for me at allbut it all depends on your risk tolerance...make sure your #'s work...for example my numbers: i make over $1500/month per property i bought this year...if i could buy more i would but right now ive used all my equity up to 75% on my primary home...landlording is not easy either, just get ready for the roaches, bedbugs, overflowing toilets, fights between tenants, trash, etc...even w/ all of that its still worth it imo...good luck....bg

You will incur legal fees and the tenants who know how to play the game will squat til the end to make you even more miserable.

But look what happens when the rate sold is higher or lower.If the broker sells below market rates, such as 4.25 or 4.0%, the lender is basically saying, "I hope you charged some points up front, because we ain't paying you squat!".

You're going to have to find renters, rehab, fix toilets etc.So besides where you think future market values are going-do you want to turn your investment in gold into a real estate business is the first question you need to answer for yourself.

Used the remnants of an old can of pvc pipe cement instead of buying a new can- had to redo some plumbing.A few years ago I broke my own toilet by forgetting a hammer on the counter.

And you're obviously selling to lots of mom and pop retail investors who know squat about appropriate vacancy rates and capex assumptions.I'm sure you've read the article in Personal Real Estate Investors magazine this month, where they denounce the practice of ignoring vacancies and expenses in pretty strong terms.

My apartments are 30 years old.I have a maintenance guy do unit checks every 2 weeks.Basically checks water heater,heater,outside unit,light bulbs,ceiling fans,electric,plumbing,etc.We have water included in rent so stuff like replacing springs and o rings in the showers to prevent drips and replacing flappers in toilets to keep the water from running all the time.Sometimes the shutoff valve at the wall for the toilet doesn't close all the way to off or the float mechanism goes bad.You can buy a water pressure tester at Lowe's for 9 dollars.Just screw it on check for pressure.Should read 60 to 80 pounds.If it's higher than that you have to find the pressure regulator valve next to the water cutoff for the unit and adjust it.After adjusting if the pressure doesn't go down to 60 to 80 you have a bad pressure regulator that needs replacing.The importance of this is pressure is set for the cities and counties at around 160 for the fire hydrants.If pressure is high inside the apartments it can cause leaking and premature failure of plumbing parts.On the insurance we are required for replacement value and can't do market value.

We do it ourselves. 90% of what the inspectors look at are thing we don't care about ie. working appliances, leaking toilets, rubbing doors, etc.

I have heard of pulling the toilet due to plumbing problems as well.

I'm wanting to get into Real Estate since the housing market in my area is in the toilet (you can get properties on the penny right now).