For example, my appliance store gives me a 10% discount, so I charge a 5% markup to my owners to make a little money and the owner still saves 5% from retail. 

For many it could be a decent strategy to invest their money back into their property.Its the same thing for doing a renovation.

In total, including money lost from rent, legal fees, and repairs, the situation cost almost $30k.

Why would someone buy now and make little money for the chance that the rates will adjust later?

By managing yourself, you keep that money in your pocket.✅ Hands-On Experience – If you plan to grow your real estate portfolio, managing tenants yourself can teach you valuable lessons about leases, maintenance, and local rental laws.✅ More Control – You’ll personally handle tenant screening, rent collection, and property upkeep, ensuring everything is done to your standards.✅ Stronger Tenant Relationships – Being involved directly allows you to build rapport with your tenants, which can lead to better communication and longer leases.Cons of Self-Managing❌ Time-Consuming – Dealing with maintenance requests, late-night emergencies, and tenant disputes can quickly become a second job.❌ Legal Risks – Chicago has strict landlord-tenant laws.

Imagine making millions of dollars over the course of your career and then having to pay 30-50% every year to uncle sam instead of compounding that cash over time.This is exactly what real estate professionals have learned to mitigate.To reduce their taxable income, they just buy a building every year, do a cost seg, and use depreciation to reduce their tax liability dramatically.Their personal wealth snowball grows much larger and much faster than their W2 counterparts who give most of their money back to the government each year.Following this strategy as a real estate professional is one of best ways to end up with a much larger net worth at the end of your career.

. - We always recommend buying your first rental locally if possible and DIY managing to learn as much as possible before investing OOS.2) Lots of crooks and incompetents in the PMC world:( They both cost you money.- As already stated, you'll have a small portfolio.

What you’re suggesting is not cash flow, it’s return of principle, giving her her own money back  If she sells with your deal.

I will be utilizing hard and private money along with creative financing.Thank you!

We were wondering if it would be best for him to get the degree or to drop out and focus on making money and getting experience in real estate instead (or try and do both)?