Editors Notes

Real Estate Investing?

One of the reasons I like working at the hotel has to do with the people I get to meet.
The other night I met a woman who, along with her husband, invested in real estate. As they acquired single-family homes they rented them out. As the tenants proved their ability to pay the rent, they were offered the opportunity to own the property.
The couple created a mortgage, keeping the monthly payments the same as the rent. The mortgages are 30-year fixed, with a high interest rate. The benefit to the renters is they now own a home they may not otherwise qualify to buy.
The benefit to the owners is a consistent monthly cash flow without the hassle of being a landlord. They anticipate being able to collect those fees well into the eighties (nice retirement fund.)
I like the idea of a buy and hold philosophy, especially when the property can be a long-term financial asset. I’ve always considered the buy and flip concept as too risky. Yes, there can be considerable short-term gains, but for my tastes and temperament I prefer something that leads to a more stable cash flow.
Do I currently invest in real estate? No. Just looking.
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