Comments on: The 20-Something Guide To Real Estate http://20smoney.com/2008/08/04/the-20-something-guide-to-real-estate/ 20s Money: The #1 Website On The Internet For 20-Somethings And Their Money Wed, 07 Jan 2009 02:38:39 +0000 http://wordpress.org/?v=2.5 By: InvestmentPlayground http://20smoney.com/2008/08/04/the-20-something-guide-to-real-estate/#comment-643 InvestmentPlayground Sun, 24 Aug 2008 04:23:43 +0000 http://20smoney.com/?p=183#comment-643 Great post. Real estate is exceptionally dangerous if you're in it for a short term buck. The best thing is the tried and true method - buy a piece of real estate if you have the cash, don't overleverage yourself and thereby screwing yourself over (hence 2008 America), and make sure to have a cushion built before you even start. I bought a home at the tender age of 25. The rent was at $2000, the mortgage was at $1000. Great, right? Well taxes, insurance, and PMI (necessary insurance for under 20% down) brought it up to $1400. Then my furnace blew and I lost $4000. And then I went two months with both units of my home vacant, losing $2800 to mortgage payments. I now barely break even every month, can't sell the place, and after having things relatively stable for a year I'm back now to one paying tenant. Real estate is not as easy as it seems. It's hard work and can be risky. Be careful out there... Great post. Real estate is exceptionally dangerous if you’re in it for a short term buck. The best thing is the tried and true method - buy a piece of real estate if you have the cash, don’t overleverage yourself and thereby screwing yourself over (hence 2008 America), and make sure to have a cushion built before you even start. I bought a home at the tender age of 25. The rent was at $2000, the mortgage was at $1000. Great, right? Well taxes, insurance, and PMI (necessary insurance for under 20% down) brought it up to $1400. Then my furnace blew and I lost $4000. And then I went two months with both units of my home vacant, losing $2800 to mortgage payments. I now barely break even every month, can’t sell the place, and after having things relatively stable for a year I’m back now to one paying tenant.

Real estate is not as easy as it seems. It’s hard work and can be risky. Be careful out there…

]]> By: Scott http://20smoney.com/2008/08/04/the-20-something-guide-to-real-estate/#comment-528 Scott Wed, 06 Aug 2008 14:17:13 +0000 http://20smoney.com/?p=183#comment-528 Investing in real estate should be examined on a cash flow basis, not a capital gains basis and you can create great wealth in any market. Investing in real estate should be examined on a cash flow basis, not a capital gains basis and you can create great wealth in any market.

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