It was our primary a few years ago and we decided to sell so we could escape the capital gains tax.

This offsets your mortgage and builds equity while you gain experience with lower risk.Real Estate Investment Trusts (REITs): REITs let you invest in real estate without directly managing property.

Most were renting below the market.Using a property manager can significantly benefit you in several ways:1.

The principal sum, plus all accrued interest, as defined above, shall be paid to the Holder upon as set forth herein.Payment & Due Date: The Maker shall not be obligated to make any payments ofprinciple during the term of this loan until January 4, 2024 ('Due Date"), at which time the entire principal balance, plus all accrued and unpaid interest, and other charges, if any, shall be immediately due and payable in a lump sum balloon payment to Holder.Collateral: This Promissory Note shall be secured by a mortgage lien against thefollowing real property: Address listed; (the "Property"), executed by Maker for the benefit of Holder.Assignment: This note is NOT assignable by Maker without the written consentof the Holder, which shall not be unreasonably withheld.Default: The occurrence of any of the following shall constitute an "Event ofDefault':Failure to make any payment due hereunder;Nonpayment of principal upon the Due Date;The breach or failure to perform any of the terms, provisions, conditions,promises or agreements in the Note, that is not cured within five (5) days ofthe date of written notice from Holder;Any representation or warranty made or deemed made by or on behalf ofMaker to Holder under or in connection with this Note shall be materiallyfalse on the date as of which made;

If you have lived in the property for two out of the previous five years you could qualify for the 121 exclusion, where you get the first $250k ($500k if married) of the gain tax free.

Then after a few months, you will appreciate the expense of outsourcing, and the benefits.

If you are looking for long-term appreciation, another asset might work better, but you won't get the same benefits of being able to go visit it.

I agree with Afra at that price point it's best to start with flips that have $15K - $30K rehab budget to gain some experience and get a good team in place and then work your way up to larger rehabs with higher ARVs!

I will say however, that there may be an indirect benefit to not APPEARING to hold many valuable assets.  

The key is going to be showing the long term gains, since they won't see any returns for 1-2 years.