All Forum Posts by: Alex Legore

What is a good starting point?

Also, do property management companies usually manage things like duplex's, or just the bigger stuff?

I guess a more appropriate question would have been; "What are the strategies people use to get to the top the quickest?". I know that's the 64 thousand dollar question, but people do make millions in this line of work, and I figure all of them couldn't have had millions to start off with.

Basically what I'm getting at is, it seems like it would take forever to work up to a seriously profitable complex, and I was wondering if I may be missing some basic concept.

Oh, so you're saying if you buy a property at a really good deal (say something under the appraised value), you now have the down payment, plus the difference in purchase price and appraised value in equity?

So in theory, if I bought a 100k property for 50k (probably never going to happen, but an example), I would have 50k in equity plus whatever I put as down payment (if any, beings it was under appraised) and could then use THAT as a down payment towards another property?

That doesn't make sense. What if I sold the first property? The bank (or lender) was essentially using that as collateral.

I'm not saying I want to start out in a huge full size apartment complex, I'm just wondering how people get there from $100 a unit in duplex and singles?

So this is my first post on here guys. I got a reference from some guy over on ATS and thought I'd check it out. Looks like a wealth of great, non-BS, info. Awesome.

Anyway, I'm 23 and an aspiring landlord. I know it's always best to start out small, but from what I'm seeing it seems like single family and duplex's hardly make enough money to cover expenses, and on top of that, you've got a bunch of money tied up in a down payment that you can't use on some other property (unless you can use that equity as a down payment on another property. Not sure how that works).

Anyway, bottom line is, if they hardly make any money, how does one eventually build up to being able to afford a full size apartment complex or commercial property? Or better yet, build one? Seems like that's where the real money is, but it also seems like it would cost a fortune as well.

Sorry for the ignorance, as I said, I'm a newb. ;)