Quote:
Originally posted by Quoth the Raven
Why do you guys invest in such low density residential dwellings? These type of properties are so small that the owner cannot retain the services of a real estate manager to take care of the day-to-day management of such properties.
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the cheaper the property the easier it is to flip it if does not go well and buying a "white Elephant property" for 1 mil and renting it for 100,000G a month you carry a great chance of loosing money. If you have a mortgage payment of 7K and you do not have a tenant for one month you just lost 3K on the other hand if you have a mortgage payment of $300 month and your tenant pays $800 it is a lot easier to take a $500 loss then $3k. Also it is so much easier to find someone to rent your apartment for $800 then 100, 000 even if it is 100 times better.
