protechig wrote:Thanks for your response. And yes, I know what you mean by that. My goals are more diverse than just real estate, but I want REI to be a major part of my portfolio. This house, i'll be living in one of the units, if pipes break i'll be dealing with that whether there are other tenants or not.
I live in Philadelphia, and, compared to other major cities, have favorable housing laws for landlords. Realistically I can evict someone in 30 days. I will also be very selective with tenants since i'll be living in the same building.
Also...to paraphrase that investor, being a residential landlord makes you cynical and risk-averse. It's not conducive to being charming, but it does have some upside. Those traits are helpful when financially aggressive and optimistic investors blow up in a bad market. It's nice to see someone you don't like have to cancel his country club membership due to financial hardship.
Rental real estate isn't just a way to generate cash flow - it's a way to save money aggressively (in the form of equity), to have the value generally keep up with inflation, and provide you with some income.
And keep a lot of cash on hand. You can need a new roof sooner than you think.