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Real Estate: The New 401K?

  • May 4th 2009

by Mark Wellborn

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The Washington Post had an article in this past Saturday’s edition about a DC-area couple that has invested in real estate in the hopes that it will support them in their later years. The properties that they purchased include a condo in Manassas, two houses in Prince William County, and two houses in Memphis, Tenn. Most of the properties were in foreclosure proceedings when the couple purchased them, and they have since renovated the homes and they are now available for rent.

In theory, this is a great idea, and one that could prove to be profitable in the long run. However, as The Post points out, there are a variety of factors that could hamper the plan’s success:

“These are not easy times for those looking to profit from the [real estate] bust. Lending standards have tightened, making mortgages for investors harder to come by. There is also no guarantee that home prices will end their free-fall. Buying a foreclosed-on home, fixing it up and then becoming a landlord requires patience, vigilance and capital, and success is not certain.”

This article originally published at http://dc.urbanturf.production.logicbrush.com/articles/blog/real_estate_the_new_401k/869.

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