Quote:
Originally Posted by will76
not sure i follow, exactly.
If you talking about long term real-estate as far as rentals? it can be "passive" from a time standpoint, you could hire a handy man and/or prop manager to deal with everything so you don't have to be hands on. But you still have all the other risks, vacancy rate, cost for repairs, uncollected rent, etc etc... And now you have more costs because you have to pay someone to do that work, so your "deal" has to be that much better so it can at least pay for the mortgage muchless make you a profit.
Please explain what you thinking about as long term passive investment when it comes to real-estate. I don't know what else would be "long term" unless you were renting it. Building, fliping, etc.. are all short term. You wouldn't buy something and let it sit and do nothing with it for many years then sell it. The only long term passive real-estate investment I can think of is buying your own home.
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The thread title was about what we invest our money in... Getting a mortgage to buy a rental property doesn't sound like investing money to me. I can only comment on what I've done...
In the last year, our two properties (which we paid cash for), have taken about 3 days of our time. We use an excellent management company who found good long term tenants, and after taxes, management fees, and expenses, have made 9% on the initial deposit. The end game of course is to wait until the real estate market and economy have recovered, and sell the homes at substantial profits (they were foreclosures of course), but until then I'm happy with a 9% return, which I am confident I will get on the third house I buy this week. This house will not be vacant for more than a week or two, it is in a desirable neighborhood, and we rent them out a couple hundred under market price.