Stop Swinging for the Fences: How I’m Building a Multi-Generational Wealth Engine the Low-Risk Way

by | BiggerPockets.com

Are you a swinger?

No, I’m not talking about ’70s-era party animals. Most of them swung out decades ago. I’m talking about baseball. Well, sort of.

A friend of mine named Bruce Chick was a star baseball player and a great guy. He played minor league baseball in the Red Sox organization. One season, he abandoned his solid hitting strategy and decided to aim for home runs on every at bat.

Bruce started swinging for the fences.

This didn’t work out too well. He didn’t hit the number of home runs he hoped to, and his batting average sunk to dismal depths.

Of the thousands of baseball players who came up from sandlots to the Big Leagues, this strategy has worked for some.

  • Babe Ruth
  • Hank Aaron
  • Barry Bonds

But these names stand out because they are the exceptions. It’s well known that Babe Ruth was also well known for striking out. He had almost twice as many strikeouts as home runs in his 22-year career.

When I talk about swinging for the fences, I am talking about taking big risks. Giving it all you’ve got. Investing every ounce of your resources into the highest or most dramatic possible outcome.

Should you swing for the fences? Well, it depends.

It depends on the situation. There are times when I love swinging for the fences. In fact, I think it’s mandatory if you want the most out of life.

There are other times when I think it’s disastrous—specifically when it comes to investing.

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When Should You Swing for the Fences?

Like I said, there are times when it’s critical if you want to live the life you were designed to live. Here are a few examples.

Following Your Dreams

The Daily Positive reports on a recent study performed by terminal care nurse Bronnie Ware. Bronnie says the number one regret of the dying was that they didn’t pursue their dreams and aspirations. Rather, they settled for what others expected of them.

These people wish they had swung for the fences. But it was too late.

Are you suffering from analysis paralysis and stalling on that first real estate purchase? Are you dreaming of quitting that nine-to-five but are too scared to make the leap?

Maybe it’s time to swing away.

Loving Others

I love “taking risks” with people in public—to show people that someone cares. I engage in conversation with strangers. I encourage people who look depressed. I offer to pray for people who are sick. I give away two-dollar bills to kids.

It’s a lot of fun to swing wholeheartedly when it comes to people. And it makes for a lot of memorable (and a few awkward!) situations.

I believe we were created to receive love and to love others—even strangers, co-workers, and enemies. And like I tell my kids that shyness is no excuse.

Are you holding your cards close to the vest? Playing it safe? Protecting yourself from pain?

I can confidently say it’s time for you to take a swing.

Related: 4 Ways Technology is Shaking Up Commercial Real Estate (& Why Multifamily Will Pull Ahead)

Being There for Family

It may have been the late Senator Paul Tsongas who first said, “No one on their deathbed says, ‘I wish I had spent more time at the office.’”

If you’re married or have children, it may not seem that investing more time with them classifies as swinging for the fences. In fact, to be honest, the time needed there has sometimes seemed to be the very thing holding me back from swinging.

But you know the truth in your heart. Most spouses and children need more of us than we are giving them. There are obviously seasons where we are running hard to get a new project or company off the ground. But those seasons shouldn’t last forever. No matter how tempting or fun that seems.

We were made for relationships, and we will find deeper meaning and fulfillment there than any amount of success and financial reward could bring. The evidence is in the shattered lives and families of many successful people. We have all seen them.

Are you tempted to put business or hobbies or sports or TV ahead of the people you should be loving the most?

Then it’s definitely time for you to take a swing for the fences.

And When Should You Refrain From Taking That Big Swing? 

“It’s not how much money you make, but how much money you keep, how hard it works for you, and how many generations you keep it for.” —Robert Kiyosaki, Author of Rich Dad Poor Dad

If you’re a millionaire by the time you’re 40, but blow it all by age 50, you’ve gained nothing, except the opportunity to start all over again.

Investing Your Money

Are you still swinging for the fences with your investments?

I hope not. But if you are, let me encourage you to stop. Right now. Whether you’re 22 or 82, it is not a workable long-term strategy. It wasn’t for me, and it won’t be for you either.

Sure, there are rare people who defy the odds and make it big. And many investors hit it out of the park once—but they get the taste for a repeat, which often eludes them the rest of their life. 

There comes a time in many investors’ lives when swinging for the fences is no longer fun or profitable, when the elusive glitter is seen for the illusion that it really is.

Like I said earlier, stories of those hitting grand slams abound, but there is a reason they’re told repeatedly.

Because they are the exceptions.

For each of these stories, there are dozens who have swung away and caught nothing but air. They were left rebuilding for years to get back to where they were when they took that crazy plunge. Which story do you think will be told in blogs and bars and real estate investing clubs?

a.) Johnny bought a home for 45 cents on the dollar, then while renovating found out it could be rezoned commercially. He went on to sell it for four times what he paid!

OR

b.) Gary and his son began quietly buying apartment buildings. For years, they faithfully built this business. They never made a fortune in any one year, but over time, they became one of the wealthiest families in town.

By the way, Johnny’s 300 percent profit story didn’t include the slam dunk deal that went south or the quick flip that turned into a slow nightmare, landing him a job delivering pizzas for Domino’s ‘til he got back on his feet.

The Law of Risk and Return

This is elementary, but it’s worth underscoring here.

Risk is proportional to potential return—at least in the age in which we live and the planet we inhabit. Look at the odds on the lottery ticket, the “beta” on stocks, or the published success rate of making a million in multi-level marketing.

I don’t think I can top these four paragraphs and graph from Investopedia:

“The risk/return tradeoff could easily be called the ‘ability-to-sleep-at-night test.’ While some people can handle the equivalent of financial skydiving without batting an eye, others are terrified to climb the financial ladder without a secure harness. Deciding what amount of risk you can take while remaining comfortable with your investments is very important.

In the investing world, the dictionary definition of risk is the chance that an investment’s actual return will be different than expected. Technically, this is measured in statistics by standard deviation. Risk means you have the possibility of losing some, or even all, of your original investment.

Low levels of uncertainty (low risk) are associated with low potential returns. High levels of uncertainty (high risk) are associated with high potential returns. The risk/return tradeoff is the balance between the desire for the lowest possible risk and the highest possible return. This is demonstrated graphically in the chart below. A higher standard deviation means a higher risk and higher possible return.”

A common misconception is that higher risk equals greater return. The risk/return tradeoff tells us that the higher risk gives us the possibility of higher returns. There are no guarantees. Just as risk means higher potential returns, it also means higher potential losses.”

Did you catch that? “The risk/return tradeoff tells us that the higher risk gives us the possibility of higher returns.”

tenant-screening-tips

Don’t Roll the Dice With Your Investment Funds

If you treat investing like gambling, you will likely not retain your wealth long. Investment advisors typically advise their clients to allocate no more than about 10 percent of their funds to high-risk equities. This should be money you can afford to lose. As one advisor told me, “Don’t allocate any funds to high-risk ventures that you won’t miss if alternatively used as kindling in your fireplace.”

If you roll the dice with 50 or even 100 percent of your investible capital, and win, what about next time? And the following? This is simply not a sustainable strategy for 99 percent of the population and not one that lends itself to commercial real estate investing. If that is your strategy, perhaps you should stop reading this article and go bet on horses.

In my first venture into commercial real estate, in the 90s, I invested with my partner who built a beautiful office building in a great location in Colorado Springs. Though it finished out nicer than expected, faster than planned, and under budget (even building through a Colorado winter and dealing with environmentalists over a rare breed of endangered mouse and 53-foot deep concrete piers) we opened our doors not long before the 2000 downturn—something we could not have anticipated or controlled.

Related: Why the Wealthy Put Their Money Into Multifamily & Commercial Real Estate

The profitability on that venture never approached what we planned. The project barely survived the first several years. We made it through a very lean time, but here’s the point: This high-risk/high potential return project was another example of the boom and bust mentality of a developer.

If you want to invest that way, I hope it works out well for you. Many developers are among the world’s wealthiest individuals. But I believe that many more have ended in shambles, losing their wealth, their health and sadly, sometimes, their reputations and families.

It’s important to get this straight. High risk does not lead to high return. It leads to high potential return. And equally true that it leads to high potential loss.

After years of hard knocks and lessons, I recommend that you consider investing carefully and not gambling with your assets.

Like I said in a previous article, it is critical that you know the difference between investing and speculating. Hopefully you do. And hopefully you’re investing.

“Investing should be more like watching paint dry or watching grass grow. If you want excitement, take $800 and go to Las Vegas.” —Paul Samuelson, First American Winner of Nobel Prize in Economic Sciences

Think about it—if you continue to play double or nothing, you may win a few times. But you will eventually land on nothing. And then what will you have left to play with next time around? You can do the math on that.

Bears prosper in some markets. Bulls prosper in other markets. But sooner or later, pigs will be consumed. I don’t want to see this happen to you.

For the Long Haul 

I have heard of dozens of ways to invest in real estate, and I’ve been involved in close to a dozen myself. I’ve made money flipping homes and lots, in rental homes, lease options and more. After a lot of research, study, and observation, I made a decision to follow a new path several years ago.

I have concluded that multifamily investing is one of the safest, most stable, and most profitable investments on the planet. After doing a few smaller deals, I have determined that the safest path to wealth in this arena is specifically through commercial (large scale) multifamily investing.

I interviewed Rod Khleif, a well-known real estate investor, on my podcast the other day. He had over a thousand single family rental homes when the big downturn hit. He also had some multifamily in his portfolio.

Though his total loan-to-value ratio was only about 30 percent (this is very low) when the market turned, he lost everything in the downturn. He told me that this was due to the fact that his single family rental homes stopped cash flowing.

But he went on to say that his multifamily assets performed well during that whole difficult period. This is why Rod only invests in multifamily assets now.

And this is similar reasoning for my change of direction about the time I turned a half-century. (Yes, I know I don’t look a day over 40.)

single-multi-apartment

Building a Multi-Generational Wealth Engine

Building multi-generational wealth through real estate investing does not come through wild swings for the fence. It involves careful planning, diligence, and patience. However, the gains you will receive over time are impressive. And done right, the risk can surprisingly modest.

Successful real estate investing has an eye on the distant horizon. But it often has stable cash flow from the first year or two, and the tax benefits can be astounding.

Building a multi-generational wealth engine targets wealth for decades, or longer, and gives little thought to one-time gains.

Successful real estate investors are aiming at generations they may never see. An opportunity to leave a legacy like Babe Ruth or Hank Aaron.

Without the arthritis.

Are you aiming at home runs or ground hits in your real estate investments? Why?

Let me know your thoughts in the comments!

About Author

Paul Moore

Paul is author of The Perfect Investment - Create Enduring Wealth from the Historic Shift to Multifamily Housing, leads Wellings Capital , a multifamily investment firm, and hosts the How to Lose Money podcast. Paul was 2-time Finalist for MI Entrepreneur of the Year, has flipped 60 homes and 30 waterfront lots, developed a subdivision, and appeared on HGTV. Paul's firm invests heavily to fight human trafficking and rescue its victims.

53 Comments

  1. Giovanni Isaksen

    Great points Paul. Reminded me of what mentor Tom Barrack said about real estate investment; It’s not about inventing the next iPad or launching the largest leverage buyout. It is about showing up, doing a good job and harvesting reasonable returns which will look strong in hindsight against other asset classes.

    Howard Marks said something important about risk/reward that is intuitive but not obvious: If riskier investments could be counted on to produce higher returns, they wouldn’t be riskier. – Something to keep in mind when contemplating swinging for the fences.

    • Paul Moore

      Thanks Giovanni. I love that quote about riskier investments. I might add that to the next edition of my book. So intuitive… but so well said. It is obvious that you have thought about this a lot, and we are obviously on the same page with risk and return. What are you doing in the REI world right now?

      • Giovanni Isaksen

        You’re welcome Paul. Lately a lot of deal sponsors have been tightening up their underwriting processes and I’ve been providing a second set of eyes on the financials. Also have looking in a wider range of markets and sectors for value add opportunities.

        I think about the nature of risk and what can be reliably forecast very deeply because my clients and I all invest according to Buffett’s Rule 1. That’s the key in long term out-performance, hit the singles and doubles and avoid the strike-outs.

    • Kevin, I thought the same thing. There is no logical reason why SFHs would stop cash flowing and multi units would. Especially if his LTV was only 30%. His property taxes should have gone down when the recession hit. I got stuck with 6 houses I was trying to flip. The market crashed at the end of 2007. I turned them into rentals and it saved my bacon. About half the property was underwater, but since I had cash flow, it was only theoretical. All the values have since rebounded, although not to the crazy precrash levels. I have sold one house when the renters left, but kept the others to this day. They still cash flow! Something is not adding up with this story.

      Every time I buy another single family house, townhouse, or two flat, I consider it a base hit. I try to pick up 2 or 3 good ones each year, put in good renters, pay down the mortgages. Repeat the next year and the year after that.

      I would love to get into multi family. I don’t have access to large amounts of down payment money. Unless you have really good management, you can lose a bundle in a hurry. So multi family is not without risk. No doubt there are many others who have made it work.

      • Dan Heuschele

        In my market SFR today do not cash flow when using realistic projected costs but multi families do. So I think the reason the SFR did not cash flow was that they were cash flowing less than the multi family to begin with. Market declined resulting in rents declining (which did not occur in my market).

        I am only speculating based on my market.

    • Paul Moore

      Kevin (and all who commented on Rod Khleif’s story): Thanks for commenting. I think the answer comes down to several factors.
      -> First, multifamily is counter-cyclical. At least in the last recession. When people were losing their over-leveraged homes to foreclosure, or just walking away from them, their credit and bank accounts were bruised. They needed a place to live, so they turned to rentals. Others realized that home ownership was not their greatest investment anymore, so they started renting. During these same years, construction (including multifamily) plunged. New renters outnumbered new units at a 7.7 to 1 ratio during the Recession. Supply and demand became imbalanced. Rents often (not always) continued to rise while most everything else fell apart.
      -> Second, government tampering in 1995-2005 came full circle. The government passed regulations that made home ownership available to almost anyone with a pulse. The home ownership rate shot up from its historical level of the low 60%’s to 69.2% by 2005. Home ownership dropped to a 50+ year historical low of about 63% a decade later, and it remains there now.
      -> Third, three long-term demographic trends point clearly toward increased multifamily profitability. (A) More baby boomers are renting now. And statistics say once they rent they will never buy again. (B) Millennials often prefer renting over buying. They saw the carnage of the last decade, where home values plummeted. They want flexibility to get new friends or a new job across town or across the country. They don’t see the value in locking into a 30-year contract for a seemingly over-priced home that will tie them down. Besides, they have record student debt and a low penchant for savings. With renewed high down payment requirements, many who would buy are locked out. (C) Immigrants largely prefer (and require) renting over buying.
      Though expanded cap rates caused decreasing appreciation of multifamily investments during the Great Recession, ongoing performance of multifamily assets often continued to be strong.

  2. Paul Moore

    You can listen to Rod’s interview on my podcast (How to Lose Money). Basically multifamily (at least in the last Recession) is counter-cyclical…

    – When people were losing their homes to foreclosure, they rented. Homes went down… rent went up.

    – During the recession, while more people rented, there were less rental properties being built. Supply and demand went way out of balance (about 7.7 times as many new renters as rental units constructed during the Recession).

    – When people realized their greatest investment was not a home, they started renting more.

    And there are Demographic Trends supporting Multifamily…

    – When Millennials were coming of age in the past decade, they had high student debt and the desire for flexibility. So they rented.

    – As immigrants continued coming to America, they rented more than buying.

    – As Baby Boomers are aging, some of them are renting more. (And the stats say in general, they’ll never own again.)

    Furthermore, the government tampering from 1995 (that drove homeownership up from 64% historically up to 69.2% in 2005) unraveled and homeownership plummeted to 63% a decade later in 2005. So this added to the supply and demand imbalance.

    So Rod’s multifamily holdings continued to perform well while his single family homes plummeted.

    Thanks for the question, Kevin.

  3. Bruce Rexrode on

    Thanks for a great article Paul. Having never invested in large multi-family properties, what should I read for insights on choosing solid properties? I live in the Raleigh/Durham/Chapel Hill area.

    • Giovanni Isaksen

      Bruce for an overview on multifamily I think Ken McElroy’s book are a good place to start:
      The ABCs of Real Estate Investing: The Secrets of Finding Hidden Profits Most Investors Miss http://amzn.to/HdXVf1 The Advanced Guide to Real Estate Investing: How to Identify the Hottest Markets and Secure the Best Deals http://amzn.to/1bcWx50

      He was also the guest on the BP podcast 52, hopefully you can still find it here on the site.

      For local apartment data I know ALN has a free snapshot (and paid subscriptions too) for more local data you could check with Richard Cotton of MRA or the Triangle Apartment Association. For more specific insight shoot me an email.

    • Paul Moore

      Bruce, thanks! Giovanni’s recommendations are great. I’m sure you can find more recommendations by searching around the BiggerPockets forums. There are tons of books and resources about multifamily specifically. A few more to add to the mix: Multi-Family Millions by David Lindahl, Wheelbarrow Profits by Jake Stenziano and Gino Barbaro, The Complete Guide to Buying and Selling Apartment Buildings by Steve Berges, and I also wrote a book called The Perfect Investment: Create Enduring Wealth from the Historic Shift to Multifamily Housing.

  4. Gary Miller

    Hi Paul. Very interesting article. I just started investing and am closing on my first single family investment property. I am also interested in multifamily investment as well. Just a couple of questions: When you describe multifamily, is there a number of units that you find work well? For example, my understanding is that in many areas it is easier to purchase up to a quadplex but beyond this, there are other issues you may have to deal with and additional legal restrictions in various states.

    The other question I have refers to your friend who had thousands of single family investments that stopped cash flowing. I would have thought that with the downturn in real estate values, the rental market should have picked up (although the property values went down). Wouldn’t the rental market have become more robust providing good cash flow?

    As I consider the multifamily vs single family rentals, I have primarily considered up to the quadplex because of legal issues. But even here, it appears to me that there is greater flexibility with single family rentals: greater market for them, so easier to sell if needed. Better quality of tenant in general for single family homes (at least this is what I have been led to believe) which should lead to less tenant turnover in the long run. And finally, if the market begins to move in the right direction, single family homes should be the first to do well. I would think it’s also easier to diversify in different markets with single family rentals. Perhaps that was why Mr Khlief had chosen to have thousands of Single Family rentals.

    • Paul Moore

      Gary, thanks for commenting. I’ll do my best to answer your questions in an abbreviated way. There are tons of books and resources out there about multifamily, I would recommend looking those up and diving into the subject yourself.

      1. We prefer 100+ units because of the economies of scale. However, some people are successful with smaller multifamily.

      2. There’s a lot that goes into what makes a rental market robust, so it’s not a simple answer. See my replies above to Kevin.

      • Paul Moore

        Gary,
        I have been thinking about your questions, and others, and I have to say I am unsure of why Rod’s SFRs performed so poorly. I need to ask him.

        My own logic seems faulty… if rentals were going up, why weren’t his SFR homes going up as well?

        Bottom line, however, it is a documented fact that multifamily outperformed single family during the last recession.

  5. Matt Higgins

    I agree, I look forward to rods podcast on Mondays. I think he was trying to self manage properties scattered all over the country. Also, I don’t think he cared about cash flow when he was buying them. I have a hard time spending 70k a unit on a class c apartment when I can buy a house that rents for more money at the same price. Makes no sense to me. I have never heard Rod give a real good answer to “why”……..my guess is he’s trying to find multi family investors and good for him, I bet he will make people money.

    • Paul Moore

      Matt:
      I am not 100% certain, but I think Rod mentioned that he was more concerned about value increase than cash flow when he was buying these homes. He has an eBook available from his website that you can download. Maybe he gives more details there.

    • Paul Moore

      Leonid.
      This is puzzling. I think that he was very focused on appreciation on these homes, rather than on cash flow. And I think the 30% LTV was partially due to the massive appreciation he experienced during the prior year or two. He said his portfolio grew in value by $32 Million in one year. Then plummeted by $50 Million a year or so later.
      I recommend listening to his podcast on “How to Lose Money” which is on iTunes. Or visiting his website.

  6. Laura Sulak

    I really enjoyed reading this post! Your recommended strategy is exactly what I’m doing: investing in quality multi-families with an eye on the distant future, hoping to cash flow a little now, but be able to pass a legacy on to my children later.

    Which brings up another point in your article: family. I sometimes feel like I’m moving too slowly in real estate because I’m a relationship person. I’ll close the computer to spend time with my children in the evening, really focus when I’m with friends and plan business around family events. But sometimes I wish I could do more, be more nimble, move faster. THANK YOU for the reminder that everything is right on schedule and that this real estate thing is a marathon, not a sprint.

    It’s so refreshing to see heart and business in the same article!

    • Paul Moore

      Laura,
      Thanks for your kind words. This is so true. A Marathon, not a Sprint. We have a short time to invest in our children and spouses, and what we do with and for them will matter forever. Success or failure in real estate is important, too, but that is possible while loving our families at the same time. Thanks.

  7. Martyn Lockwood

    Nice read Paul…thank you. Would also like to hear the reason why Rod Khleif’s SFR’s stopped cashflowing during the downturn…people still have to have a roof over their head, whether it be a condo, house or whatever the case may be.

  8. Jocelyn Borg

    Bravo! Where’s the applause emoji when you need it?! What an excellent article, thanks so much for taking the time to put together such a thoughtful and wise bit of advice. I can tell you, you’ve just made a big difference to the way this particular newbie will be approaching real estate investment – THANK YOU!

  9. Christopher Neeson

    The best way to swing for the fences is not with all your funds but with all your research. Find the markets with the best possible long term stability. Do not be afraid to jump in full force once you have processed many areas and found that one solid investment market.

    I have been lucky enough to find those 200% to 400% ROI deals lately. I can also say these opportunities are like tornados they only hit certain markets. To top it off , for it to be a good investment it should show historical price security (not an up and down market) or big job growth in the area.

    You’ve basically just tasked yourself with searching for underwater treasure to some extent.

    I do use the term swing for the fences, it targets more of the don’t just wait around crowd.

    Thanks for the article, sone great insight.

    • Paul Moore

      Christopher, thanks for commenting. Totally agree that it is wise to go overboard with research, as long as that research leads to positive action as you mentioned. Congrats on finding those deals! When we look for multifamily deals, a highly diversified, growing job market is very important to us.

  10. Rich Stenberg on

    I think this is a great article…In general. Going to take issue with a couple specifics nonetheless. There are two issues, time horizon and diversification, that aren\’t discussed, but make a big difference in how safe your investment strategy really is. The author warns against \”high beta\” stock investments, noting the correlation between risk and reward, but noting that risk cuts both ways. On an individual stock that\’s certainly true, and I\’d take it a step further and say that even \”safe,\” blue chip companies that seem like sure bets can pan out as horrible investments (Sears, pre-bankruptcy GM) in the long run. If you are well-diversified in hundreds of stocks, and not over-concentrated in particular sectors though, people like Fama and French have gotten Nobel prizes in economics for proving that the risk-return correlation will work in your favor if you wait long enough. So if you\’re 30-40 years from retirement and figuring out where to put your IRA money, you could do a lot worse (as most do) than a diversified fund of high beta stocks, like a value fund, assuming you keep buying the same fund, even when things turn South (as will inevitably happen at times over a 30 year period). The same goes for real estate. Your multifamily could look like G.M. in 1970, but when your area\’s largest employer leaves, you might not get even the modest and steady return you planned on, assuming it is a positive return. This article is right that you should run your numbers, and weed out obviously poor investments before making them. But having other investments, life and disability insurance, and for many of us a steady paycheck too, is a more surefire approach than simply owning properties in a single community. Few people in Detroit, Bethlehem PA, or St. Louis in 1950 knew how their cities would fare in 1990, and no one wants to be the person who put all their eggs in the basket of 1950 Detroit city property. Especially when most people use a substantial amount of debt to purchase real estate, almost the definition of a risky investment, regardless. IMHO the safest strategy is multi-pronged one. And by the way, none of this is a commentary on the wisdom of buying GM Sears, Detroit, or even Bethlehem real estate today, since past losses are already priced in. I\’d be more worried about Seattle or San Jose…

    • Paul Moore

      Rich,
      Great comments! Thanks so much for your thoughtfulness in response to this article. You obviously have a great knowledge of this topic. As someone who lived in Detroit while it was cratering (1990s), I agree with your comments.
      Our company has a list of about 24 items we want to see in a metro area that we invest in. And we want to invest with a time horizon that is hopefully conducive to lower risk of an economy cratering. Charlotte and Dallas look like they won’t be collapsing in the next decade. But no one knows for sure.
      Thanks again.

  11. Ronnie Woolbright

    I too would be interested to hear how Rod lost all SFH during the downturn. My guess is that his 1000+ units had something to do with it. We all know that SFH take more work to manage and a portfolio of that size would be difficult to keep profitable in my opinion. Not saying SFH is bad because that is all I own right now and I am happy with them.

    • Paul Moore

      Ronnie,
      Thanks for commenting on this. See my detailed comments above to Kevin. Please note that I made similar comments twice because they went to Bigger Pockets’ spam filter the first time, then it came in later.

  12. John Murray

    All great points and here is my great analogy. Growing up I wanted to surf the biggest waves in the world. I grew up poor but happy, surfing all the time. I wanted to make it to the North Shore of Oahu the Mecca of surfing. I devised a plan to join the Army and go to Schofield Barracks very close to the the best surfing in the world. I surrounded myself with knowledgeable surfers and trained for big wave survival. When the time came I took off on my first 20′ wave and got better at riding big waves. My dream was realized by hard work and focused thinking. That chapter of my life was realized by age 20.

    I have adapted this philosophy for all my endeavors as I matured into the man I wanted to be. All the prep for real estate investment was becoming journey level trades competency and years of study of tends and when the timing is correct. Preparation in life is the key to success, when the timing is right take off on your big financial wave and get better to become the best you can be.

    • Paul Moore

      John, thanks for your comment. Congratulations on realizing your dream so early. Something powerful happens when we focus our lives on singular goals. With your mindset, I’m sure you will be successful in real estate investing!

  13. Andrew Bergman

    Great article Paul! I just subscribed to your podcast and looking forward to gleaning information on multis. I have been a sfr investor for several years and looking into multis in the near future. Thanks for taking the time to write and answer all the comments!

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