I understanding starting locally, paying your land lord dues and making your bones in areas close to home from a logistics point of view... but after you've done a few, is it wise to continue in a less efficient area or expand your horizons to better investment arenas?

I don't see seasoned investors buying these types of properties for the most part.So then in my mind these newer investors are buying properties that have minimal returns because they do not have the experience to properly analyze a purchase price.If you are buying TURN KEY you are paying for it.If you want some easy don't expect to get rich off of it.These new investors in my opinion would be better off handing the money over to a seasoned investor who will purchase properly and give them the returns wanted WITHOUT the headache of land lording or overpaying.Again I have never used a turn key company.I just know based on many accounts of others buying through them that many times it does not work in their favor.I have yet to see an independant third party that bought post everywhere that they are cash flowing great and would use turn key again.Instead it's nightmare after nightmare.If I have to deal with a properties nightmares I will do the work and reap ALL the forced equity I wring out of it.Not overpay for lipstick and then be fixing problem after problem.Before you buy in that area go to the eviction court and see how many cases are processing a month?

Brad, can you name a couple of solo 401k custodians that permit borrowing?

thanks for the info Brad, I'm thinking of having the driveway recoated with the black tar.

They almost always are gone before that, and most of the time, even before the court date.It's not a bad thing for you to go through the entire process one time, so you understand it.This is the hard part of land lording, but deal with it head on and without drama, and everyone will be better off.

Thanks,Brad

You've asked a lot of good questions, Brad.

It is imperative that you read Lee Robinson's Land-lording book. 2.

Looks like you have the landlording part started.I grew up with real estate: so the understanding the market is ingrained from following my mom by watching her.I read a lot of investment book, majored in finance, did bookkeeping..Worked as RE agent for a few month (Asia)What I didn't know was: flipping : had to do one to understand Land lording: my flip didn't flip so learnt land lording on the fly Buy/selling: learnt each project from everyone involved from seller/buyer to inspectorsFinancing: learnt on each project just by talking to brokers/mortgage/bankNew construction : chose to work with builder on live in flip.

In my farms, as long as the property wasn't in a war zone, land lords would have taken that at twice the price.