Posted by Bud Branstetter on January 13, 2001 at 01:24:59:
No, I don’t think rentals are the best way of investing. Rarely can you find that rent house that will have 98% occupancy over the years, no maintenance for 5-10 years, has equity built in, takes little down and has a positive cash flow.
Take a newer home in good condition with a little equity and find a resident beneficiary or tenant buyer. Collect a few thousand up front, positive cash flow and in a few years another payday. Little maintenance worry or management problems.
I suggest not using equity in your own home to invest. I suggest learning how to do it with little or none of your money first. Then you can use cash when it buys you something more. A participatory note is where your private investor can get a fixed return plus a percentage of the profit. He is a lien holder and you have control of the property.