Either way...always happy to talk shop with other investors.

Or do you look for Multi-family or Apartment Complexes or Trailer Parks or Shopping Malls etc?

@Ron Dayley    you did not mention mandatory floor time  :)  really everything you point out is so 1980.. simply not how the industry works today.. are their shops that work like that certainly are their boutique shops that require NON of what state absolutely... other than continuing ed...

I can't tell you how many I bought at the court house steps that would wave that worthless paper at me.I felt really bad for them.. the AG's put all those dirt bags out of business and from my point of view then went over board...

At move in, I give them shovels, rakes, a sink and toilet plunger and one bag of snow salt a year.In addition they receive an automated text of the 1st reminding them of to pay their rent by the 4th and to let me know if they have any maintenance issues.Most months, I rarely have to do anything except the occasional drive by of the property (or inspection)and get the occasional maintenance text.

My wife's father owns 2 commercial properties that he has sold the "business" (Tire shop) to someone else but continues to receive the rent for the 2 adjacent properties.

Note that I don't know for sure about the closing costs as I’m still shopping lenders and I haven’t gotten quotes to mow the grass so I’m estimating some of these numbers as well as a few others.Units 3Rents $425, $425, $450Purchase Price $75,000.00Yearly Property Tax $1,379.00 Monthly expenses - Insurance $80.00Property Tax $114.92Landscaping $50.00Water $100.00Vacancy 10% $130.00Maintenance 10% $130.00Cap Ex 10% $130.00Will self manage $0 Expenses Monthly Total $734.92Cash Flow $565.08 Cash Flow (After Mortgage) $261.07 Loan Amount $60,000.00Down Payment $15,000.00Interest Rate 4.500%Length (Years) 30 Monthly Mortgage Payment $304.01Closing costs $25002% Rule 1.73%50% Rule 56.53%Cash on Cash Return 17.90%

They see real estate as a pure tax write-off hobby.I consider it a pretty good deal - two properties are located in areas that are active and sprawling - one property in particular is situated next to a massive vacant lot (where a factory once stood, but was demolished years ago) that has been bought by commercial developers who have released plans to bring a large grocery store, along with shopping and eateries - I know this information because, well, just trust that I know.

I am now in the process of putting a tenant in place and putting a mortgage on it as early as possible to be ready for the next one.I really like this strategy due to cutting out the high interest rates of a HML and private financing.Make sure to shop around for setup fees.

About a year ago I became really frustrated with presenting designs to a major shopping centre developer and not understanding the financial terminology they would use during meetings.