I’m only 2nd generation RE investor. My parents bought SFR to rent out. They still have their dozen or so all paid for and giving them income. Their philosophy was to put a crap load of money down and pay off the mortgage. They didn’t help me get any of my rentals – although they did give me a “gift” of cash to buy my house after I got married.
I’ve followed all their advice, except for the one house I got in 2006. I didn’t put enough down to make it so the rent covered the mortgage. The other ones I have are cash flowing.
Whether it takes 2 years or 20, ALL my investments produce an income – through rent. The PROBLEM in real estate happens when people try to employ the appreciating nature of real estate to make quick money through flips. That’s how people end up “underwater.”
In any kind of economy, but especially a recessionary and hightly inflationary economy like the one we are in today, the fundamentals (and wisdom) of buying an income-producing asset are as sound as they have ever been.
