As the years went by , we started learning and doing more , and more Exit Strategies with real estate . Then one day with my CPA I discovered that the strategies , mainly rentals were really the overall best investments we had done . Fact we still own the first two rentals we ever purchased today . We also discovered that no matter where the market or real estate cycle went , we always were making money with the rentals and at the same time getting tax deductions for having them . The only thing was we were managing these rentals ourselves without really knowing a lot about managing . Over the years though we have learned a lot and we did try property managers in the beginning , but they did not work out so well . However fast forward to today and we do have a great property management company that manages some of our properties , but we learned through out the years how to screen for the good management companies . Anyway , managing was time consuming and always something going on . But it also was creating Wealth for us . Yes , you heard me wealth ! We will explain that a little later .
Now as we started building our portfolio , we soon went from houses to duplexes to twenty and thirtyunit apartments . The cash flow was strong but still you had to deal with the tenants . By the way depending on the class of the
“ If you don ' t find a way to make money while you sleep , you will work until you die .”
Warren Buffett
building you were dealing with different classes of tenants . Low income , working class , and middle income . All of which have different issues when it comes to rentals . Some pay on time others do not . Some take care of the units other do not . The key was older buildings sometimes based on how they are built may be what is known as Class C . Now what I like about class c buildings is they are usually
Image by congerdesign from Pixabay cheaper to the higher end prices . In a way the same purchase because of the age and again goes for houses some can afford a 4000 master metered utilities and such . square foot home while others only about
Everyone wants to rent one because the a 1000 square foot home will work . rent is usually including some or all of Now I hope to get you to the point of the utilities . As you move up in the class what this article is about , and that is are of the building so moves up the price and you creating cash or wealth ? Both are type of tenant . What we mean the more a great however I think it was Warren tenant makes income wise the nicer a Buffet that said , “ until you can make building they want to live in . Everyone money while you are sleeping , you will wants a nice unit but not all can afford work till you die ” Now that got my attention . You see the very thing we call ourselves “ investors ” means we invest money expecting to get more money back . The only thing was for me is I wanted to make that money regardless of what I did each day . I wanted what I called Residual Income . Money that worked for me weather I worked or not . That was my original real estate goal without knowing what it was called or how to achieve it .
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