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I loved this report on CNBC last week. Now, if you think I’m going to go with the conventional wisdom of the Oracle of Omaha, or the Real Estate Goddess, you’re dead wrong. If you read the MSN article below featuring Vena, you come away thinking that all humans are cut out to be landlords. If you listen closely to Warren Buffet, he says (paraphrasing), “I’d buy up a couple hundred thousand houses if it were practical to do so”

Its true, rates are low and houses seem cheap but, landlording is friggin’ tough! Especially in towns like Baltimore where landlords are hated. And managing rentals just might be one of the worst jobs in all the job-universe. Tenants & Toilets is not for everyone. Period!

So, tread lightly my friends. Internalize this right now: You can not make a living owning 20 rentals with leverage. If you have to pay the bank, the property manager and save dollars for the inevitable vacancy or leaky roof, there ain’t a whole lot left over for you. If however you could own all 20 of the same properties with no bank financing, now – you are truly makin’ bacon. Go ahead, let it sink in. It ain’t glamorous, but I’ll be damned if it’s not the truth.

Ask yourself this…faced with a 3-month vacancy, would you sleep better at night if you owed the bank this month’s mortgage on the rental, or if you owed yourself this month’s mortgage on the rental? This country is littered with the carcasses of dead investors who thought they would strike it rich as landlords making $300/mo cashflow.

So Vena Jones-Cox, I respectfully disagree.

Read MSNBC’s article with Vena: “Investors Buying Homes by the Dozen.

Watch the interview with Warren Buffett “Warren Buffett Wants Houses