When I was fresh out of college, I used to work behind the counter at a feed and farm supply store. It was a fun job, mostly because of the customers who came in. Many of the customers were farmers and so they would come in on a weekly basis to purchase feed for their livestock.
Some of the farmers were wealthy individuals who purchased a farm either as a tax deduction or a hobby (or both) and so I was able to build a relationship with some successful business owners and pick their brains on what made them successful.
I had never thought about rental property investing, but one day one of the regulars came in and this gentleman began to tell me about his business of owning rental real estate. I must have looked a little confused because he finally at one point looked at me and asked “If You Could Own 10 Houses And They Wouldn’t Cost You a Dime, How Many Would You Want?”
He explained that although purchasing rental property often involved a down-payment, if you own the property for several years, you will earn that money back through profit and appreciation and your tenant will pay your mortgage for you. Then he blew my mind by telling me that although you make a profit, thanks to depreciation your tax bill will be lowered if not completely off-set.
My mind was blown. I asked question after question. And this nice gentleman answered them one by one. Finally I asked, “why then only own 10… why not own 100… or more?”…. He grinned and said “now you get it son….” and he walked away.
Of course owning 100 rentals takes time and is something we have to build up to, but my goal is to get as many as I can. If I live to be an old man, I will someday own those properties free and clear. Even before I become old, though, I can enjoy monthly income from my rentals.
As of this writing, I own 10 units… Next goal- 100!