Quote:
Originally Posted by Rutuu
REITs don't give him the leverage a property does.
Some of the dumbest rich people I've ever met in my life got there with property.
Pick somewhere with income growth, near amenities, and below or near the cost of replacement and you'll be sweet.
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You can definitely do well with real estate either residential or commercial no doubt about it. Having grown up in the business myself, I can tell you that it isn't easy as some people think.
Plenty of smart people will have bought an income property and than become totally amazed at the level of work involved and the annoyances they deal with.
Someone mentioned a short term rental being more like a hotel than a rental property and that is an excellent way of looking at it. I am not in the short term rental market myself but I always tell people, you got to deal with every tenants issues.
My brother had a few cross boarder rental properties in Arizona and purchased them cheap enough he was making good money. It was a lot of work dealing with homeowners associations, taxes, property management companies and more. He had grown up in the business as I had but got tired of some of the small things that you can't fix when your so far away.
Minor landlord/ tenant issues where the property manager just emails you to approve expenses for all purposes. It's one thing for you to go across town for a minor issue that can be dealt with right away but when your in a different country, it's a different game.
Nothing wrong with being honest with the OP and say that unless your 100% comfortable dealing with this issues and paying associated expenses, than don't get involved. Buying an income property is buying work too. If you can't deal with complaints than that's an issue as the easiest level.
It's like the people who buy restaurants, small operation ones and than are utterly amazed they are scrubbing pots, pans, dishes, shopping at Wholesale Club and Costco daily. Probably thought they would be in a suit, handing out the wine menu and being the top sommelier making $400 in tips while the $16 an hour employee's took care of the back.
Everybody needs to know what they are getting into and be honest about it.
OP: Best of luck with whatever you decide.