November 21, 2019

“Never invest in anything that eats or needs repainting” . . .

This title is a quote from Billy Rose, composer and investor.

THE LESSON:  Any investment that depends on repeated infusions of cash probably is not as good an investment as it first seems.  Even if you try to take the ongoing expenses into account, there is a good chance that you will underestimate them.

Example:  Those who are tempted to take advantage of today’s beaten-down real estate prices by becoming landlords should speak to a few other landlords — or a knowledgeable real estate consultant — first to get a clear picture of what you may be getting yourself into.

This warning is my introduction to a series of articles to follow on the ins and outs of investment properties.