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Done the same over the years. Although slum lords can do better, I prefer the higher end, where appreciation is part of the equation. Property management headaches typically go down at the high end because there's more $ per unit, and the things that break tend to be per unit/person. You also have more $ to fix things and can do it "right". Finally, you can enjoy the places yourself.

Typically, I shoot for ~5% rent to value ratio, e.g. $100k/yr income on $2mm worth of property. With appreciation, I can see why old people do this.

I used the time to bootstrap a company to 40 employees, and profitability-- boy, that wad hard work.

bbf.io/snacks -- killer food for bay area offices and startups



Sort of similar questions I asked the OP:

How much capital did you invest, and how much debt did you use?


Sorry, this is confidential. :-(

Also, the capital equation is something you can compute: if you want $x in income, then how much capital cost is there etc

Keep in mind, we're in a low interest rate environment.


Absolutely. :P

Was just curious how you would run something like that, by raising equity, instead of putting up all of your own money. I know it's possible in some cases, but often, it doesn't make a lot of sense.




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