motion, anyone can invest in real estate. Ya just have to do your homework. I just don't like losing money, and I'm sure most others don't either.
You don't have to put down 20% for non-owner occupied. 10% down is not a problem, and if you're not interested in maximizing profits, you can even get by with 5% down or less. You'll just pay higher interest rates and/or private mortgage insurance (ROI will be higher though). For what you propose, 20% down sounds good.
The scenario you present is very plausible, in my opinion. Don't think of making a single penny for a long time, and you will make a fortune times 2. I like your idea.
v9ff, regarding cashflow, have you considered taxes, insurance, repairs, maintenance, management fees (if you do not manage yourself) in your cashflow calculation? However, a good investment does not necessarily need to show positive cashflow. The properties in Phoenix might very well be excellent investments. I have no idea without looking at hard numbers.
I simply took exception to your statement that a purchase with 5% down will show positive cashflow, when I doubt such is the case.
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