Buy in a primarily owner-occupied neighborhood to attract tenants who are a lower economic risk.

@Tyler Mehigan Basic Economics by Thomas Sowell

My definition of a dependable passive income is as follows:Reliable - You continuously receive the income with minimal interruptions, in good and bad economic times.Inflation Adapting - Your rental income increases faster than inflation, so you have the additional dollars you need to maintain the same lifestyle.Persistent – The income continues for a long time; you and your spouse will not outlive the income.Below is an illustration of the process I recommend following:Goals - Start with your goals.

Berkshire Hathaway Realty is pretty active  realty brokerage and I am sure generates plenty of cash flow from brokering deals, so no matter how you slice it, Buffet is making money.As for apartment investing and the greater economic conditions he mentioned in the quote, seems like solid reasoning, as he is well known for.

Again economics tension.

I learned that just because a neighborhood is a B/C+ does not automatically mean it’s strong economically.

Look into Cleveland, its got good cashflow potential with appreciation happening as well.Looking for appreciation come to Columbus, there are still 1% deals, but the more attractive part is the population growth and other economic drivers!

In today's economic environment let's just say that two full-time people, including overhead, will run you no less than $250,000 per year.

Buy in a primarily owner-occupied neighborhood to attract tenants who are a lower economic risk.

Homes are generally less well maintained and are more prone to economic fluctuations.