I have no experience with Real Estate, but am very interested in apartment buildings and have been doing a lot of research. I have cash on hand, but not a lot of time to manage anything outside of my core Internet business. My goal is to generate some extra passive cashflow through apartment buildings which require no hands on management by me. I'm interested in apartment buildings over SFH's because I like the idea of consolidating the maintenance and management of multiple units into one package. It just doesn't seem worth it to me to add the headaches and overhead of owning a separate SFH for only a few hundred per month in cashflow.
My plan is to test the waters by purchasing or possibly even building a small-medium apartment building that has good cashflow even with me outsourcing everything to a management company or possibly an on-site employee. If all goes well I'll start picking up more buildings as I find them and repeating the system.
Any thoughts or advice that I should be aware of as I consider this? Is is possibly to successfully be a truly absentee and hands-off owner? For those of you who hire management companies to handle your apartment buildings, how much work and hassle do you still end up having to go through yourself?
EDIT: I'm also considering commercial real estate for less management cost/hassle. Any thoughts or comments on commercial vs. apartments?
My plan is to test the waters by purchasing or possibly even building a small-medium apartment building that has good cashflow even with me outsourcing everything to a management company or possibly an on-site employee. If all goes well I'll start picking up more buildings as I find them and repeating the system.
Any thoughts or advice that I should be aware of as I consider this? Is is possibly to successfully be a truly absentee and hands-off owner? For those of you who hire management companies to handle your apartment buildings, how much work and hassle do you still end up having to go through yourself?
EDIT: I'm also considering commercial real estate for less management cost/hassle. Any thoughts or comments on commercial vs. apartments?
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