How to
Residential Property
Maximum Cash Flow
and Resale Value

Sixth Edition

by John T. Reed

John T. Reed Publishing
342 Bryan Drive, Alamo, California 94507
925-820-7262 Fax 925-820-1259 E-mail:
To my son
Steven Tunnell Reed


For more information, see the order forms elsewhere in this book, call 925-820-7262

Thanks To

My wife, Marty Tunnell, for her proofreading
My resident managers over the years: Marion T. Reed (also my Mom), Irv Welsted, The Stephensons, Vince and Pat Peterson, Lloyd and Evelyn Moore, Neal and Tammy Cowles, Pam and Steve Shockley, Bud and Clara Cameron, Ron and Linda Butler, Cecilia Pitcock, Harry Woods, Mark and Masheille DeRossett.
My advisors: William Nickerson, Leigh Robinson, Ro Freeman, Barry Conway, Mike Scott, Bob Bruss, Duane Gomer, Dave Hann, John Heintges, Tom O'Dea, Sam Plimpton, Ralph Bunje, Bob Goodman, Ira Serkes, Greg Crouch, Marc Goodfriend, Jane Garvey, Marty Rubenstein, Steve Patterson, and John Beck.
My fellow apartment owners: David and Suzanne Bloore, John Toraason, Frank McGinnis, Tom and Stephanie Kurkjian, Paul Meyer, Jim Sirbasku, and Chris and Vince Tobkin.
My former real estate employers: Bob and Dale Pritchett and Ted Fox.

Copyright © 1985, 1988, 1989, 1991, 1995, 1998, 2003, 2010 by John T. Reed
All rights reserved.

Published by Reed Publishing, 342 Bryan Drive, Alamo, CA 94507 925-820-7262
Manufactured in the United States of America.
ISBN: 0-939224-42-9
Library of Congress Catalog Card Number: 98-067085


John T. Reed was a small-scale landlord for 23 years. He has been a real estate writer since 1976.
He has invested in New Jersey, Texas, and California.
He is the editor and publisher of John T. Reed's Real Estate Investor's Monthly, a national newsletter-and the author and publisher of ten books on various real estate investment subjects.
Mr. Reed has been interviewed about real estate by Morley Safer on 60 Minutes, by David Hartman on Good Morning America, and by Larry King on Larry King Live as well as other television and radio programs. His analysis of real estate investing has appeared in The Wall Street Journal, Newsweek, U.S. News & World Report, Changing Times, Money, and various real estate journals.
His real estate experience includes single-family rental houses, duplexes, a triplex, and apartment buildings ranging in size from twelve units to over two hundred units. He has been resident manager of his own buildings and property manager for other owners.
Initially, Mr. Reed owned apartments in New Jersey-one of the most anti-landlord states and one of the tightest markets. From the seventies through the nineties, he was a landlord in Texas, which is at the other end of the spectrum on both laws and market conditions.
Mr. Reed holds a bachelor of science degree from West Point and a master of business administration degree from Harvard Business School.