Posted by DanT on March 14, 2001 at 08:46:41:
For an individual just starting out, doing 4-5 rehabs in a year, working a job, having a life, is a pretty aggressive goal. With more experience it would go faster of course. You state you are nervous about a possible economic down turn, if you are holding 2-4 units at a time during rehab, the same risk exists, only now you have no income available to off set the carrying cost.
Not the worst plan in the world, just maybe a little aggresive starting out. As far as carring the paper, you are still somewhat of a landlord, with less day to day contact. I guess what I am saying is you can’t be totally risk adverse and invest. If so CDs at the local bank would be a better bet. And it is hard to control many factor in a rehab. There are many things going on, undicovered problems, bad contractors, cost control etc.
I am a rehabber/landlord. I like that mix but do much of the work myself. I also have a full time job. Start slow the first year and see how it goes. Then speed up, change direction, modify direction based on what you find with experience. DanT