Given the current climate over real estate you’d be bang on the button if you started to ask the smart questions. The smart questions of course have to do with choice, like should you be choosing to invest your money in single-family homes or should you go into multiple-family properties.
I’ve made a fortune doing the latter so you’d expect me to be biased about it but I am not. When it comes to making money I am always open-minded and it is always good to examine trends and weight things up in a matter-of-fact way because then the judgement made is more objective. Objectivity is highly prized particularly when you are looking for a way out of the rat-race, so let’s go to it.
Over the past few years anyone who bought a single-family house on either coast has seen a handsome return for their money. This is because prices have been increasing at a double-digit rate leading to some serious appreciation and equity build-up. As of December last year things changed.
We are now in what is going to be, by all forecasts, a prolonged period of either static or dropping property appreciation and this means that putting your money in a single-Family property is not going to be the smartest investment decision of your life.
Which leads me, naturally, into the appeal of multi-Family properties. In the eyes of most real estate investors the perceived drawback of a multi-Family property is the fact that you will have to deal with tenants (and the issues of the blocked toilet drain in the middle of the night) and have far more complicated book keeping to do than with a single-Family property.
As a man who became a millionaire out of doing business with just this kind of property I can tell you that your fears here are unfounded. I have more than 4,000 apartments in eight states I own and I do not meet or deal with a single tenant. Nor do I spend my entire day dealing with book keeping.
The reason I don’t is because I believe life should be enjoyed and in order to do exactly this I have devised a system, which allows me to run my properties and take care of my book keeping without having to be chained to them. After all let’s be clear about one thing: you are going into this business exactly because you want to be free from the rat race routine and desk slave mentality not because you want to replace one with another.
If you are ready to truly shed your desk-slave chains and stop working nine-to-five for peanuts then you will have to start thinking about getting into the multi-family real estate investment market and become owner of properties which generate cash for you month after month irrespective of whether you are in town doing some work or have hit the slopes at Aspen for some serious skiing and much needed R & R time.