To acquire your second residential income property, follow the following 5 steps:

1. Start by preparing a Summary Sheet of offerings in your area. You can also refer to your earlier Summary Sheet to see if it has good properties still remaining in it.
2. Get out and visit the buildings that interest you. Carefully inspect each. If you feel at all doubtful about a building, but think it would be a good buy, get a building inspector to go through it with you. This will cost you a few dollars, but it is worth it.
3. Keep looking until you find the building you want. Negotiate to take it over for zero cash down. Concentrate on deals in which there has been some kind of loss - divorce, death, or illness in the family owning the building. You will find many buildings in such families are often available for no or very little money down.
4. When you cannot buy a building for zero cash down, try to borrow the required down payment. When you list your first building as an asset on your financial statement, you should be able to get a loan for a large enough down payment for your second building.
5. Use the services of your attorney and accountant to guide you on the takeover of your second building.

“Mud Flats” Can Be Money Machines

Daily, on my way to my office, I pass a group of residential buildings that are sometimes called “mud flats”. The owner of these buildings never refers to them as his mud flats. Instead, he calls them his rental income “money machines”. His 1,000 apartments in these money machines each give him a Positive Cash Flow income of $300 per month, ($300,000 per month). And - I’m sure - he is eating very regularly!

“But”, you say, “I don’t’ want to take over as many as 1,000 rental units. Just 100 units at $300 per month each will give me an income of $30,000 per month. That’s enough for me because the yearly income (before expenses) will be 12X$30,000 = $360,000! I don’t need any more income than that!”

That’s fine with me. All I want for you is good, dependable income from your real estate. And that income should be large enough so you can have all the good things you want in life.