Hi everyone, I am a 22 year old from WI who wants to branch out into real estate, I have a friend who is a RE agent and he is showing me the ropes. I have done alot of research as well. This is my current plan, I can only qualify for 2 small mortgages right now on my income. I am planning to purchase a duplex soon, and live in one unit and rent the other, the payment will be $561 a month and I can rent it for $800 a month. I am also planning to buy a 60k house with 20% down and rent that for $800 a month as well. I would buy 2-3 more properties but I can't qualify for anymore than 2 mortgages. I however will still have some capital left, enough that I can buy a 40K house, hoping to find someone who wants to sell a 60-70K house for 40K, I know it's a long shot, but I have faith. I then would rent that for $800 a month as well, I would sit back a few years and save up the cashflow until I could buy another property. Is my strategy reasonable?
That sounds a little aggressive to me. Don't rush everything into it when starting out. Hold some cash in hand, and learn the game along the way. I am sure you will find better ways and better returns for you reserved capital as you gain experience.
Two properties to start sounds good enough.
Good luck with RE investment career!
Hello, thank you for replying. If I bought 3 properties to start, I would still have over 20K in reserves. I will start with 2 and see how well they do, then if they are going well, get a 3rd, I plan on being patient and getting the right deal on the 3rd property, as well as the 2nd.
I'm with Zach. This is a principle illustrated in the book, Rich Dad, Poor Dad by Robert Kiyosaki, a great read, as well as his books on real estate by the way. Cut your teeth on 1 property first, figure it out, and then look to the future. Be the patient investor. REI is a get rich slow proposition, but a good foundation is needed. Education is the best tool in your arsenal for making lots of money. I have learned this the hard way.
As Zach said, two properties for now would do.Learn more and you'll find better ways to allocate reserved capital
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