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by toomuchtodo 2938 days ago
You don't have to live somewhere with non-recourse mortgages. To get started, you only need 3% down, an FHA mortgage, and a 4-plex that cashflows slightly. You then eventually refi that with something more conventional and move on to your next property.

Real estate is only one investment vehicle where you don't need a large amount of capital to realize substantial cash flows. Whenever possible, seek out leverage opportunities.
1 comments
TheCoelacanth 2937 days ago
You don't get to choose where you are born or grow up. You are effectively suggesting that people move a thousand miles away from every single person that they know just to get more favorable mortgage laws. That is not doable without starting from a position of privilege.
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JoeAltmaier 2937 days ago
As investment, you don't actually have to live where you are buying. I have a relative 2000 miles away that buys condos in my city as investments. My wife researches them, reports back and they make a buying decision. There's a favorable situation here and they're taking advantage of it. Not by 'privilege'; by smart investing.
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TheCoelacanth 2937 days ago
If you can afford to buy a house that you aren't even living in, you have far more financial resources than the vast majority of people. You seem to be completely deluded about how much a normal person can afford to put into investments.
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astura 2937 days ago
The average person probably shouldn't be buying investment properties anyways. Running income producing properties is more of a part time job than anything else. It takes significant effort to find the right property at the right price with the right renovations in order to make a good profit. Unless you're really willing to put in the leg work (and usually the "sweat equity"), you're better off putting your money in index funds or REITs. It takes the right person to make money in real estate.

I've known several people who wanted to "get into real estate" so they bought duplexes and became landlords. All of them lost money or broke even because they went into it without doing their due diligence. My parents ended up just walking away from their "investment" property and declaring bankruptcy, that's how much they lost out. It isn't buy property -> profit like people think.

Leverage cuts both ways - it magnifies both gains and losses.

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