I’m not relying on any statistics or economics education – just intuition. I recall my parents selling a house in the 1960s and being grateful that they didn’t lose too much compared to their purchase price – kind of like when one sells their car. That always seemed to me to be better for people. A new house would cost more than a resale. A resale house might sell for more if it had been improved in some way. Most houses would depreciate to some extent. That seems like that would keep housing affordable and stop the unrealistic notion that one’s shelter is also one’s retirement plan.

For your house to also be a good investment, you have to either sell it and move to something less expensive to get the money, or take out a loan for some of the equity and pay interest on that loan. I don’t know why anyone thinks that’s good for most Americans.

Because people do believe that, a lot of people have become dependent on real estate as an industry. Of course, it is painful for them now with prices and employment related to real estate down, but wouldn’t we all better off if it stayed that way? Don’t all of these artificial attempts to reinvigorate that part of the economy just invite more of the same bad results? Let’s go back to manufacturing things we can export.

That money will be taxed at an even higher rate, My account did the math- showed me the #s- once again, I pay for nothing (why is that so hard to understand)

To be honest, I have no desire to “Own” my rental property out right, The way I see things when it comes to my “first” rental is- why should I put such a large sum of money into something, that others are paying for? The rent covers the mortgage- which includes interest, taxes, insurance- and my personal expenses. With that logic, there is no need for me to do so. I can use my additional cash for other things.

Now on the taxes side of things, Let’s say if I paid off the property- What would I have to off set my income? nothing really- with this rental, I am able to write off the interest, “repairs” etc. so there has to be a balance- If not, Uncle Sam will rape me over and over again. (trust me I know, pre-rental ownership)

Everything else I own outright- My cars, The wife’s house (our house.)Every thing else I buy is paid for cash. And in the near future, when I buy another property, my logic will be the same- Have “them” pay for.

Its always nice hearing from and talking to traders, but I have a question: If you are one of the “true” professional traders, why did you go into debt for the rental property with the added interest? The traders I know have been very debt and credit adverse and usually bought virtually all their goods and services, whether it be a rental property, home, car, etc, with their own cash outright.

I don’t need luck, I’ve done this successfully for 4 years,
How are you going to sit and tell me what I do on a day to day basis?

Yes, I live how I see fit, (Can you hop on a plane, and just decide that you want to relax in Miami, or in the Virgin Islands, last minute at any given moment?
No I don’t spend Market hours in front of a computer screen (It only takes 20-30 mins tops) for the things I trade–
No I don’t trade every day, no need to be greedy if I can make 6-10K a day.
I eat lunch when ever
And Yes I do exceed returns far beyond the S&P 500 index fund.. I exceed it in 1 given day-
You have no clue

Not only do I trade for my self, but I have an LLC. – Just reached my 218 investor- Min investment 5K– My management fee 20% off all gains–your good at math right?
When it comes to trading- that’s my passion-

check http://www.thelion.com I am one of the Guru’s there, the owner–He’s been doing this for years..we travel, choose to trade when we want, nothing confines us…… Top trades can make 30K+ a day on a trade if the opportunity exist…. (and yes the possibility to loose-generally for the newbies who do not know the in and outs of the market and do not know how to manage risk) but I make an excellent living doing what I do.. here is another trader http://timothysykes.com/ (but he makes more off his blog, which sells the concept of trading) but same trading concept…. Making money in the Market- it’s real!

Thanks for the advice.
i am currently own a 2 bedrooms condo, and it’s pay for. Also owning 2 townhomes and rent it out. I should look into muti-Family home, since the interest rate and the home price are super low.
Do you have a good link anywhere to help me out with muti-housing investment.

thanks,

tom

I am doing great In my real estate venture. I know all about equities and commodities, (I am a trader) I trade currencies, and mainly stocks- day trader to be exact.. I live my life as freely as possible, not confined to a 9-5. I know the best of both trades, its just a matter of how you let your money, or the bank’s money work for you. That’s the purpose of the banking system, use it to your advantage

It all depends on your location, prices, and the type of person you are. Do you mind doing house maintenance, such a mowing your yard, or snow removal- or would you rather pay a condo association that does all the maintenance work? Would you rather struggle to pay a mortgage by yourself (although you may make excellent money) and have that peace of mind, or would you rather live in the multi-unit property and have the renters pay the mortgage, while you can save your income, collect the additional income- but you may give up some peace of mind when dealing with tenants. It all depends on you, as well as the price, and the type of investment.

I never invested in Condos- too many of them were built, over flooded the markets, too many are left vacant, over priced then, may be cheap now- It’s a great alternative to own only, if payments are significantly lower than rent. If not, it’s better to own a single family. Easy turn over rate, depending on your area (do your research)

Home prices across the country are still relatively low, but not as low compared to last Oct.08 through March 09. I will advise, if it’s your first investment, go with a Multi-Family- Compare the prices with what they were priced at before the boom, at the peak of the boom, and when it hit the bottom, just to make sure your entry price is well positioned. Make sure the rental income is enough to cover the mortgage, and always make sure your cash-flow at the end of the process is positive.

With the market today, would you be best to invest in home, condo, or muti unit? Since you are a plummer, i guess you save lot of money by repair the pluming yourself.
Give us more advice.

thanks,

Tom