A few other thoughts, if you want to get down to the nitty gritty about the bottom line, though some of these stats are relevant whether you sell or keep the prop: -expected appreciation over life of investment -equity bought through mortgage payments -benefit of the interest home mortgage interest deduction in terms of saved (or shielded) current annual income -a 10% misc operating expenses bill tacked on -a 4%-12% vacancy rate average depending on local norms -25% recapture of depreciation -cost of improvements that will likely become necessary if you keep the house for 10 years+ like new roof, new water heater, new carpet/floors, etc...minus the depreciation you can claim for each over time -whether you've held the property for at least a year, which will impact the classification of short-term cap gains taxed at personal income rate, or long-term cap gains currently taxed at 15%.

Investing out of state is difficult as well unless you can get into a triple net lease or a large enough commercial residential place that can afford full time management and still cash flow (the do exist in this part of the country).Only if there was a way to sell short in real estate like you can do with stocks.

It is very difficult to sell a "used" home in a market of new homes.The resell prices of brand new homes in subdivisions that are still being built usually drops a significant amount until the subdivision is complete.

I may not be explaining this very well, but I am basically afraid of capping myself out credit wise that I will not be approved to buy more investments and that is the whole goal.

The more difficult ones are the homes you bought at market price and are trying to sell shortly thereafter at an inflated value.

I don't doubt that it is possible, but it sounds very difficult.

Just a very short rant here, but I can't help myself. Just finished my taxes and it came to 136 printed pages! That is absolutely NO exaggeration. That's a book. Uncle Sam is requiring his citizens to write a book f...

I did not mean that $100 would get them 5 properties and of course over time cap expenses occur requiring cash reserves.I started in the business that way.

However, this scenario is much more difficult because the market has been so hot that developers do not need to subordinate lots in order to make them move.I would also put forth a word of caution regarding these types of deals.

How difficult would it be?