Do You Like To Play Russian Roulette?

“The rent covers my PITI so I bought it.”

“They had just reduced the property $15,000 so we snatched it up. I mean, that’s a deal, right?”

“Can’t miss. All it needs is carpet and paint.”

Do you like to play Russian Roulette? Then maybe real estate investing is for you. Using the above mentioned “can’t miss” strategies is an excellent way to simulate playing Russian Roulette.

Spin the chamber, pull the trigger and see if it worked out!

There’s really nothing to gain because you already had your life. Oh, sure. There is a thrill to be had. But this is a classic case of High Risk, Low Reward.

If you are of the gambling persuasion I would urge you NOT to run a financial analysis on your next real estate investment purchase. Live life on the edge. Go ahead. Pull the trigger.

3 Comments

Filed under Real Estate Investing

3 responses to “Do You Like To Play Russian Roulette?

  1. Chris Lengquist

    This is a reprint from an email I received regarding this post. With the writer’s permission I reprint it here:

    I just had one of those cant miss moments…or so it seemed. I was in St.
    Joe this weekend and I heard about a house that was for sale for the low,
    low price of $34,900. Can’t miss, right…to good to be true…I would be
    crazy to pass on a deal like this. Well I took a deep breath and backed away
    for the ledge. I made arrangements to look at the property with the owner,
    who by the way was very honest in answering my questions. On the way there I
    was recounting our conversation and the questions you asked me. I now know
    the true answers to those questions.

    The house was in an old part of town in a very mixed neighborhood. Overall
    the house was not too bad in my opinion, but once the neighbors came out
    shouting every explicit word in our language they could not have sold it to
    for $34.00. And the neighbor’s house went with their mouths, no grass but
    solid dirt for a lawn complete with dogs chained to trees and a car on
    blocks. To top it all off I find out that they have been reported to the
    city 3 times this year for an array of issues. Too much drama for me.

    Now I no why it was 34K and what my pain threshold is for a neighborhood and
    its residents.

    Talk to you soon
    Tabitha

  2. carlivar

    A perfect example of why you should always “stake out” a house. Like a stakeout in cop movies… grab a newspaper and some coffee and sit in your car. My wife and I did this when we bought our primary residence because an airport was nearby and we wanted to check flight noise. Due to the different planes and routes, we spent a couple hours making sure the airport noise wasn’t a problem (it wasn’t). Goes for any sort of neighborhood issues.

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