Read Rich Dad Poor Dad. It helped me get off the sidelines and into the real estate investing game. There are several other "Rich Dad" books that hammer away at the theme of passive income, but this one is a good place to start.
They find good deals and leverage their money to have a positive cash flow from the get go. (From the 1st rent check). Meaning their (rent) - (mortgage payment, insurance, taxes, repairs, vacancy estimate, etc) = Positive
Quote from: shotgunwilly on May 15, 2015, 02:19:14 PMThey find good deals and leverage their money to have a positive cash flow from the get go. (From the 1st rent check). Meaning their (rent) - (mortgage payment, insurance, taxes, repairs, vacancy estimate, etc) = PositiveSo essentially, the assumption is that you're taking out a mortgage on it and whatever you rent it out at covers the mortgage payment, insurance, taxes, repairs, etc *and* more?
I guess if you look at it that way it makes more sense. So then should anyone in their right mind *ever* pay for a property they intend to rent all in cash (even if it's a good deal)? This seems to make sense if you are a multi-millionaire and can afford it but otherwise, it sounds like people sort of 'use' a mortgage as an intermediary here to hold them over until the mortgage is paid off (by renters) and the passive income starts coming in. In this case though, do most people who intend to do this take out a 30yr mortgage?