[quote=sdrealtor]As for me, I will take a lower return to have the comfort of being able to self manage and keep a close eye on my rentals. Its different for everyone.
There is no such thing as a free lunch[/quote]
I agree with sdr on this one. I think what is missing in this nice thread is the ability to work things out backward.
To me, it has to start out with what your ideal tenants persona (that matches your skills and resources to provide a rentatl to them), and then work backward to see what properties you should purchase and only then check whether the number would work.
Most people started out with the number and I don’t think it is the right approach. The number would be very different if you are catering long-term tenants because you rely on future price appreciation of your property (e.g. good schoo districts) or if you are trying to get the maximal possible cash-flows out of the tenants as your goal is to flip the property quickly as well. There are always common things in serving these different demographics, but there are also many differences.
All successful real-esate investors eventually get specialized in one special-area of real-estate…and thus make the productivity soar just as Adam Smith’s pin factory workers.
Disclaimer: I don’t own any rental property so maybe I don’t know what I am talking about.
