If you have 100k equity in a house but it's not going to be easy to rent (same number of bedrooms (3) as a smaller house but bigger sf by 1000) do you sell it and acquire a smaller house that's more "rentable" or simply lower the rent price and eat the greater maintnance costs (carpet, two AC units, etc)?

You are probably working with folks that can eat your lunch and send you packing.

But if you think you'll move in five years, and the house does not make a good rental (most don't), then the transaction costs will eat you up.

You can't even eat 1 meal at McDonald's for that amount. http://finance.yahoo.com/blogs/daily-ticker/america-retirement-system-failing-us-economist-153445894.html

I just get concerned about having too many different property managers involved in too many different areas, it eats up a lot of time to make sure they are all doing OK versus just having one area and one team to cover.

We now budget for groceries, eating out, etc.

Kind of a have your cake and eat it too situation, in my opinion.

I'd give the same advice to new people today as well, if you can't eat off RE starting out, go get with a good insurance company, get a pay check, learn people and sales skills, some finance issues and how to present ideas over a kitchen table.

All old tract houses have small eat in kitchens, outdated appliances, heating and air conditioning, etc.

It is still a cost that is eating away at your profit and in some cases into the other 50%.