Most new investors want to be conservative on their first investment property, preferring to play it safe with a property that is in an area that is selling well.

Most new investors want to be conservative on their first investment property, preferring to play it safe with a property that is in an area that is selling well.

It can be difficult to switch gears sometimes, & be “unproductive” playing with the kids....I try to keep in mind the quote (which I’m paraphrasing) “don’t be so busy making a living that you forget to make a life”.

Even with the negative cash flow, if they are sold at year 5 (assuming minimal CapEx on a new construction property), I could still profit 40-50k.Are you defining this as a 'equity' play?  

We're not even sure she'll be dead in six months, as my dad had pancreatic cancer, lasted three years instead of six months to a year that doctors gave him.

There are a lot of factors that play into this deal being such a great one for me... but the 1 thing that trumps all is location.Vacancy was and is the scariest thing to me as a landlord.

I believe design played a big part in our success.

I understand the pros and cons of tying up equity in your house, but I think that's where a HELOC would come in to play.

But what long term effect does this have for banks and then those that have to report earnings with more and more dead beat properties on their books?

If your tenant is paying $500/mo in rent, and court fees are $600, and the process will take 2+ months, you are better off working the situation outside of the courts because you'll never recover that rent or your costs, and you'll be out even more rent while the process plays out.