Posted by Brent_IL on January 20, 2004 at 11:22:05:
I?m not a dealer. Dealer status was never a problem because I hold for investment. I use other entities to take title, primarily trusts. No inventory. Because of the intermediate-term sandwich position, it?s not a flip or an in-and-out transaction.
I live about 15min away from an area that has all townhomes. I would like to target these home owners and try to buy a few of these townhomes, sub2 or with private financing. I plan to rent these townhomes (sec8), because the area is a low appreciation, I can buy these at very good prices and rent them with a positive cash flow of 300-500+ per month. I am not really interested in appreciation as much as cash flow. I would like to buy about 15 of these. I would like to ask what you guys think about this strategy, buying for cash flow instead of appreciation. Thanks.
This is the sort of deal I have been recommending on this site for years. Get the pos cash flow and be happy. Don’t write off appreciation either. Even if it is low, your houses can double in 10 or 20 years. The real fortunes are made by those who keep their properties a long time and with cash flow you can afford to hang on. I also think we are going into another period of high inflation like the 70’s. These things go in cycles plus Bush’s policies practically guarantee high inflation.
I know exactly where that investor is coming from. The closest thing we do to rehabbing is new paint and carpet, and I try to avoid those as best I can. Rehabbing just isn’t my thing, it’s too much like work