I am new to real estate and got my first home - I am interested to further learning the real estate aspects, but real estate has been known for the following: flipping, rentalI do not want to do either, I am not a handy man and I do not want risk of not being able to pay for a mortgage because of the fact that there are no tenantsWhat are the other aspects of real estate that does not include the above or what are the alternatives do the above?

I would never get into something until all of my ducks are in a row...meaning that I have already established a solid network of investors waiting for my deals (which I have), and having a custom Purchase Agreement with enough contingencies to cover me whether I cannot find an invester to assign my contract to (this is the worse case scenerio)...if it were completely impossible for me to assign my contract, my agreement allows for me to walk away from the deal without any risk to me (although this is not fair to the seller).

Multi family will get you a higher return on investment and get more cash in the door versus SFRs.

However, you have to understand the risks and know that most of these funds are investing purely on speculation.

@Michael Krassos Everybody has a different risk threshold.Someone else might be happy to negotiate a steep discount for this property, by taking over a bad tenant and dealing with the eviction.Right now he's a motivated seller.

I explain the process, give them a stack of prepared deposit slips and they understand that is how they pay their rent.Very simple and no risk of you walking around with a wad of cash in your pocket on the same day at the same place every month like those "landlords" who like to get their money put in their hand.

Finally, you weigh the potential profit in each scenario with the amount of work/risk involved, and decide what the optimal rehab scenario is.In reality, you should be running dozens of potential scenarios (not just four), but you get the idea...

I'd say they are doing you a favor, 24K loan and one point, they must not be busy, grab it.5 yr. is customary, banks can't take the interest rate risk at 5%. :)

You may not count pay from a new part time job if they have no history of part time income or child support being received on a 20 year old college student may drop off at 21, so that income is not expected to continue and it would not be counted.The amounts available to these students probably come with strings attached, most likely their grades must be acceptable, if they end up on probation funds could be at risk.

Risk does equal reward.