7 of 7 people found the following review helpful
Great for those willing to stay in one place and work hard,
This review is from: Fix 'em Up, Rent 'em Out: How to Start Your Own House Fix-up & Rental Business in Your Spare Time; or, Investing in Real Estate and Creating Wealth with Fixer-Upper Houses (Paperback)
I was skeptical when I began reading this book, because I've read so much analysis of the subprime mortgage financial crisis that considered real estate speculation as a sign of a bubble. Until late 2007, too many people were buying second houses because they were sure they could flip them for a profit in a few months. For years they succeeded -- until the bubble burst.
However, the premise of this book is much more conservative. Buy houses below market value because they're in need of repair. Spend months or years repairing them as inexpensively as possible, then rent them out for a positive cash flow. And if your family lives there until it's rented, you don't have to pay a second mortgage and you can take advantage of the tax laws.
Such a plan makes sense in any market because, by fixing up houses in good neighborhoods, you're adding value. You're not just gambling the local real estate market will continue to rise.
This is not a plan for everyone. Me, I want the freedom to travel and move around. But I sure wish I'd started doing this right after high school. If I had, I'd be one wealthy dude now.
Now that the real estate bubble has burst, I suspect this strategy is even more workable for people who can raise some cash and obtain the credit. That's because market values of houses have gone down tremendously. Even houses in good condition can't be sold. You can probably find many fixer upper bargains that banks are anxious to unload.
Highly recommended for everyone willing to work hard and keep their credit scores high.