Real Estate Investments

[Rock Steady]

I've been trying to stay out of this, but it just seems more compelling all the time. The banks give you credit for 75% of the rental fees as income towards buying a property. So if you put down 25% in cash, adn be patient, you can slowly build an empire. Especially, in CA.

Online I found an interesting 9 Unit Apt complex next to a great intersecition with a train station and major shopping mall. The property is about 2 miles from where I work.

The rents for these 1 Bdr 900 sf apts go for about $1,200 / mo. The place lists for $1,610,000. Considering that here, single family homes of 2,000 sf go for $950,000, this seems like a steal. What am I missing?

Seriously, folks. At this point I have to start thinking about investing my home equity. I have no mortgage on a $950,000 silicon valley home. I think I should get a $500K mortagage, use that as a down payment on the $1.6MM 9-unit Apt complex, and grow from there.