Hello from Jeff n Debbie in Jacksonville Florida

We are new here on InvestFourMore. We have been reading Mark's Build a Rental Property Empire, and just ordered "The Blueprint".

We are early fifties and looking for a better way to reach retirement. Also, we have been active on BiggerPockets. We attended our first meeting with the local REA.

I am cautious about this process because of the following. My Dad had gotten into real estate investing years ago and had what ended up being three negative experiences.

1)One nice property with what appeared to be a nice couple renting it. They broke up and the  woman and her kids squatted without paying rent for about 3.5 months. Ugly eviction---we had to carry her stuff out to the curb with the police looking on. She burned the carpet all over with an iron and they had smashed holes in the sheetrock. Dad fixed it and sold it.

2)He bought a patio home at the wrong time in the market at a high interest rate and had no cash flow as well as no exit strategy Sold at a loss.

3)He bought a quad unit near a college and it cash flowed well. It would turn out to be the best of his properties. However, the market soared and he was keeping his eye on the resale value. When the market took a downturn, he got so discouraged about his imaginary loss that he no longer enjoyed the cash flow. He sold it and got clobbered with capitol gains tax.

After these experiences, he decided that real estate was no longer a game he wanted to play. He worked really hard and saved a good amount of money in the stock market.

So, now you understand where I am coming from with doubts and fears. However, my Dad didn't have the information that we have today. I think that makes a big difference. We have been watching our money in the stock market lose value all year. So, I am educating myself all I can and hoping to find a better way.

Comments

  • I think your last paragraph says it all. He did not have the education and was mad about an imaginary loss. If he had not sold when prices were down, he would probably be back where he was at the peak or higher now. You get bad tenants once in a while, but you plan for that and assume there will be vacacny costs. 
    Creator of Invest Four More
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