I would also agree a business is much better for cashflow (stabilized, operating well, for on going CF).Real estate does cashflow well but it wasnt overnight and requires many units stabilized and maintained to keep cashflowing regularly.

Since I undertake a number of projects with passive partners who maintain ownership interest in the LLC, I often have to negotiate this with the banks ahead of time as I customarily solely guarantee the debt and that's my LP's expectation.

To thrive in real estate investing, you must maintain a firm grip on your finances.

To thrive in real estate investing, you must maintain a firm grip on your finances.

Your property is fairly destruction proof, costs near nothing to maintain, yet you can charge above market rents.If your property is nicer (class B) where the carpet alone might be $6k or more to replace when the tenant spills hair dye everywhere, you won't be as happy as in the situation above.  

If you can prove this value and maintain high levels of communication - you will be a very valuable 'who' is someone's investing journey.

We maintained our collections above 95% through that period as did most other good operators.

Well-maintained homes: Homeowners tend to spend more time and money maintaining their homes, which contributes to the overall quality of the neighborhood.

This will cost money to maintain, cost money to manage leasers, subject you to the will of tenants/leasers should they damage something, should someone get injured, your money will be gone (for now), subject you to the will of the market, interest rates, potential market volatilities.. you will need a lawyer at that amount for sure and a good CPA. 

Purchase price: $187,000 Cash invested: $15,000 Sale price: $259,000 I got tired of moving place to place and worrying about finding roommate, security deposits and not having enough money to deal with maintaining someone elses home.