Posted by Ronald * Starr(in No CA) on July 02, 2002 at 21:32:44:
In my post for beginning investors–found by putting “beginners success” into the search function on the main bulletinboard forum of CREONLINE.COM or the Carleton Sheets Board2–I recommend finding a style of investing that suits you as an individual.
And choose a strategy that works to extract money from your investment environment.
It may take you a while to see what type of investing will be most congenial to you. You may even need to do a few deals with different approaches to figure out what you like and don’t like.
It is sort of like a student artist who copies paintings of famous artists. And makes paintings of his/her own in the style of some famous artists. And then starts developing his/her own individual approach. Musicians do it to. Early on, the Beatles played Chuck Berry and Bo Diddly tunes. Later on, they produced their own unique style.
Buying a duplex and living in one side is perfectly sensible for many people. You can get better institutional or conventional financing for a personal residence that for income properties. If the rents are high enough, you can find youself paying less than one-half of the cost of the property, the renter paying more than one-half. I started off almost doing this. I bought a four-bedroom house and rented out three of the bedrooms, living in one myself.
The negative is that you are living in a duplex, not a separate single family house. You will be very close to your renters. For most people this is ok. But not all. If it suits, you fine. I hope that you can find rentals that make sense on a cash flow basis. It may be difficult. You may have to look hard for a decent deal. Persistence is the secret of success.
Good Investing********Ron Starr*************