The less you work the more $$ you make

[Kevin Noesner]

Has anyone else experienced this bizarre phenomenon or am I crazy? I find that if I just maintain my units I'll do much better on the financial sheet than if I reinvest in purchasing new places and rehabbing. The question is when to stop and just enjoy what you have. The real estate bug has bit hard and I can't seem to stop! Hahaa. Anyone have advice on when enough is enough??

[Jason Green]

I was lucky enough to be paired with two gentleman I had never met at the golf course the other day. After talking, I learned they have been flipping and rehabbing together for more than 30 years. They together have over 100 units.

I asked them if they could go back to my age, with my capital, what would you do. I assumed they would say turn and burn and keep building cash while you are young. To my surprise, they both unanimously and very certainly said they would buy and hold.

They said they would buy as many units as I could with 20%-30% down so I have a safety net in the event of a biblical downturn and had to sell off units. They suggested 30 year mortgages and double up payments when I could.

Slow and steady was their advice. They said every time I got another 20% to put down, to go buy another one. Once I get a portfolio of rentals built up, just ride it out until they are paid off.

Very surprising they suggested this, and this was coming from two guys who have tried it all.

So to your point and question, the advice I received was basically less is more.