So much of the 'real estate educational complex' seems to focus on all the various 'gotchas/loopholes of real estate... (Credit Card financing, wraps, no-money down, wholesaling, short sales, buying all-cash site unseen properties from the sheriff, etc..etc..)
I on the other hand, want to have the most BORING, K.I.S.S. strategy as possible, (early retirement with as little as management as possible is the goal).
I keep coming back to the idea of financing $75-105K properties (25% down - 4% interest rate, 30 year fixed) in 2 or 3 markets.
These properties would be higher Quality 3 Bed/2 Bath places that need cosmetic improvements in cities with good schools and regions with good economic prospects.
Gurus: What am I missing?
Great. You have a criteria, now do your best to stick with it. Don't be fooled by the shiny objects in real estate, which lead you to chase returns.
What's your standard of living (Monthly expenses, retirement fund, and etc)? Whatever that is, you would probably want at least 1.5X that in rent before retiring early.
Thanks Jordan. My standard for living is quite low.... I could live in a Sprinter Van down by the beach.... (which means technically I could retire today!!)
BUT, alas.. there is a future wife and children to consider.
So I'm going to draw the line at 40,000. (living in a paid off house)... so that means.... about 3500 a month (after taxes).
David, you are not missing anything. The great thing about real estate is that you can make it as complex or as simple as possible.
To me real estate investing very simply comes down to buying a property, fixing it and then depending on your exit strategy, either rent or sell it. What I focus on is buying a good property at a great price, getting it fixed right in most economical way and then renting it to a qualified tenant who is going to stay in the property long term and take care of the place. That's pretty much my overall business process.
Like @Jordan Thibodeau said, you have a criteria, just stick with it and work towards getting those kind of properties.
what are you missing. The only thing that was not mentioned is it takes hard hard work. What Sharad said is exactly my plan as well. But it is hard work finding the right property that you will feel comfortable with. It's hard work fixing a home, especially when you find something you just never knew about or if costs escalate. It's hard getting the home either sold or rented. No one ever said this was easy. I work hard at all these aspects. I do have my challenges and I have been in real estate like forever. After all momma never promised you a rise garden.
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