Chris,

 You are absolutely correct about the cash on cash thing if the person is investing to build a retirmenet portfolio while maintaining their JOB.

 But if you want to get out of the JOB, you need to have rentals that put money in the pocket today to save up for future repairs and to pay your bills today.

I don't have the time to run through all the calculations.  But let's say you have a current income of $2000 a month for your job and you want to leave the full time job.  If you can acquire 20 units that are putting $100 a month in your pocket after all expenses every month, then you can replace that $2000 a month from the job.  Granted you need more than $2000 a month in rental income to replace the income from the job, plus the benefits, and to bank a reserve for potential repairs and to buy more properties.

So here is my summary:

Buying to build the retirment portfolio while keeping the current JOB to pay the bills and having the source of funds from the JOB for more down payment moneys to add properties is a good plan, if you don't plan on leaving the corporate world (or what ever job you have)

But if you are like me and don't want to punch a clock every day, cash flow now is vital.  And selling a few properties from time to time for cash doesn't hurt.

Kim Tucker

Mid-America Association of Real Estate Investors

www.MAREInet.com

Kim,

No argument.  But why quit one job for another?  :)    Seriously, I'm geared more at long term real estate investing for retirement than job income replacement as a real estate professional.   I don't see anything wrong with being a professional real estate owner.  But it's not what I'm focusing on. 

Happily, the good folks of Kansas City have you for that.  And they are better served listening to you on that subject.

Most of my clients (all?) only own between 1 and 10 properties.  They tend to be in the $125,000-$225,000 price range.  And will pay for themselves with proper management. 

Chris, looks like a nice duplex at a great price.  Hope it sells quickly for you.  Best wishes to you on this.