Starting Real Estate

A friend of mine keeps up his financial IQ by browsing For Sale by Owner listings and calculating if it’s a worthy investment. Last week he found a gem in Texas. The house had three tenants paying rent, enough to cover mortgage, utilities, insurance and taxes, and leave a couple hundred on the side.

He made some calls, got a realtor. We were both super excited. Even calculating for having tenants move, it just seemed like a no way to lose situation.

It was a good thing he got a realtor though, and got good pics of the house. Turns out there’s something wrong with the foundation. The house is leaning over, and will eventually fall over unless work is done.

While it still may make a little money, my friend decided to pass on this one considering quite a few miles states away (in California).