If you are planning on living there and the home fits your personal needs, then it maybe a good investment for your family.But if you are looking for a good income producing property, the offer on this property seems too high.

Loosing the steady paycheck made me feel like the business momentum was hindered, however, the extra time I had to invest ended up producing more returns than would have been otherwise.

I do like the idea though....in any area of life, quality usually produces contentment!

But good rentals don't usually produce passive losses.

Some brokers like Keller Williams and Reamax have teams, which is good because usually the team leader is a top producer and will hand you some referrals they don't want to bother with because they are too small of a deal.

So search CL for these terms in your target area.MLS - Have a realtor produce a MS-Excel report for you which lists all of the properties that have sold via the MLS for cash in your target area in the last 90 days.

I currently have 5 properties (10 "doors") financed by banks -- all good producing properites -- and it is getting tough to find additional bank financing.

But as rentals, they're not going produce much, if any, cash flow.

That presentation generated 4 realtor calls over the next two months that produced no business but importantly, plenty of good will with the broker owner.

But if you have one property that's producing passive losses you can use those to offset taxable income from another property that's producing taxable income.Good rentals produce taxable income.