Real Estate Investor · Baltimore, MD · Member since 2014 · 26 posts · 6 votes
Hello investors!
I like to think of 2015 as the year of passive income. the real question is do I become a landlord using strict investment strategies (low price multi units that can cash flow on average at least $1000 a month) or invest in performing notes. Im interested to know what you guys think, any note investors out there? If so what are your thoughts, landlords????
I've been a landlord for about 8 years now and prefer buying both performing and non performing notes. Much less liability and complexity. More importantly, my borrowers never call me when their toilet is clogged or the roof is leaking, yet I still get monthly cash flow from that asset. Go figure.
This comes down to the question of what are you trying to achieve at the end. If you are only interested in the cash flow, then notes will give you that with less hassle. The entry barrier is somewhat higher though. Landlording, on the other hand, may be less lucrative cash-wise but allows you to build equity on someone's else dime, which you could later use as leverage. So it is more about your medium-to-long term goals