My ultimate buy & hold plan is to buy 1 property at a time, the difference is I plan on living in the first 2. then after that find and pay off my personal property. I plan taking out the equity out after each one is paid off for the next down payment. it seems like a great strategy. safe, slow, and seems smart. The only thing is I have to wait to get my ducks in a row. I feel like out of the 1000's of ways to do buy and hold. This one seems like the best approach, Not too much risk but just risky enough. am I going about this wrong? any advise? Thank you
I'm having a hard time following. Is the end goal to purchase a primary residence all cash while having 2 rental properties maxed out with loans?
If so, as long as those 2 rental properties are cash flowing after all expenses, then I guess it makes sense. 2 rentals won't generate enough passive income for you to retire on though..
@Michael S. Your focus should be on finding a house or duplex that's way under market. Don't spend all your time focusing on a perfect plan of attack. Spend your time and money hunting deals and buy the best deal you can find.
It's not the quantity of deals that you do but the quality. You should wholesale the thin deals to provide marketing capital and buy the big spread deals as an owner occupy. Your next move would be to get a line of credit on your home. Rent out the rooms and let your renters pay down your line credit that you'll use to buy other investment properties.
The plan is to pay each off, after one is paid off I get another. by pulling equity out of last paid off home (sfh). I figure with 3 paid off rentals I could csshflow 1800 a month which could fuel my next purchases. After about 10 I could be cash flowing 9k a month. Which is my ultimate goal. I feel like one at a time seems pretty smart. But I was just wondering if anyone has kind of done it this way?
We LOVE leverage but do it safely. We buy distressed properties with as little down as possible but than we have them pay them off themselves. We also have stable W2 careers that we live off. We DON'T refinance out but we DO put little in them. This allows us to have 20% in buy them time they are fixed up and ready to rent out!
You will love the diverse community and all the resources. There are tons of methods and niches with everyone having different specialities. So a great place is to look around the blogs, forums and listen to the podcasts for different niches. If you see a post you enjoy check out the persons signature. Many of us including myself talk about our strategies, styles, niches and business model on our website. So definitely check that out as it is an amazing additional resource. For example, my blog is about while working full time, buy and hold investing, 0% Down Rentals, Personal Properties turned rentals, Long distancing investing, self-managing 3,000+ miles away. Definitely list your blog or website in your signature, if you have one. Its a great additional networking source.
Look forward to seeing and connecting with you around!
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing