That builder skipped his soils class...and they cut his head off!

Mike H. my intent here is not to change the minds of self educated older landlords but to educate those willing to learn the foundations and principles of real estate that most have skipped over.

Untill I resell it at retail for 180000 - 200000.To me this does not sound like a good deal unless I skip the hard money and purchase all cash.

Has skipped a lot of paragraphs of the importance of a re sales team.

Hindsight is 20/20 but I truly believe that if I had to do it over again I would skip college.  

They do not have time for me, just as a CEO would skip through all the emails he thinks do not matter everyday.

Sorry, looks like we're going to skip the hangout for tonight.

That includes taxes and HOA, which you mention, but numerous additional items you're skipping.

Pretty sturdy too - I am brutal with my phones and that thing has never skipped a beat.

I think what both of you are saying is that likelihood (or probability) is less when you are not leveraged (fewer units) , The impact could be more severe than if you leveraged and owned more units Let me quantify Basis From example above $300K start with $50 K houses / Rent $750 Expenses (%50) $375 ( you still have taxes and insurance regardless if you carry a mortgage or not) Appreciation 5% Option 1 Buy 6 $50K houses free and clear Starting equity = (300K value – 0 Loan Balance) = 300K Income = $750 Expenses (%50) $375 Cash Flow $375 Times 6 units = 2250 Month (same as Mr Duncan Demo) Option 2 Buy 12 $50K houses ($25K Down, $25K Financed) Starting equity = (600K value – 300K Loan Balance) = 300K Income = $750 Expenses (%50) $375 P&I (25K at %5 for 30 years yields monthly payment of $134 Cash Flow $240 Times 12 units =$ 2880 Month Risk assessment / Management While the probability of getting a bad tenant is more with the greater # of units, The IMPACT would be less: Risk Analysis Hazard : getting a bad tenant that late/skips on rent Effect: you lose one months rent ($750) Probability of Incidence (PofI) = in our example 1 in 20 (5%) Option 1 PofI = 6 units *(.05) = 30% chance Impact + (-$750 cash flow ) -> Net cash goes from $2250 to (2250-750) $1500 a (%33) decrease Option 2 PofI - 12 units * .05 = %60 chance you get stuck Impact = ((-$750) cash flow -> net cash goes from $2880 to (2880 – 750) 2130 = 26% decrease So while the chance Is greater with multiple units , the impact is lessoned due to the other income streams.