Just Starting Out And Would Like Some Advice
My name is Austin, I am new to BP and would like some opinions from current investors that have experience in long term rentals and/or flipping homes.
A quick background about myself: I am 23 years old, and since high school my end game has been to go into real estate investing full time after talking to my high school Consumer Ed teacher who was big into it. Any job I ever got was just going to be a way to fund my journey. I started going to school for pharmacy, switched to residential real estate with the goal of breaking into commercial real estate after getting my bachelors. I recently worked as a residential agent for about 6 months and decided that the agent side wasn't for me (I am going to keep my license though to purchase my own deals when I start). So I made to decision to start investing in real estate now, rather than waiting until I hit my 30s or 40s. Needing a job to fund my deals (not looking to work with investors or outside sources, I want to do this all on my own, so any profit I make...is mine) my dad had some contacts at a road construction company where I got in making roughly 60k a year. I just started about a month ago so I don't have a ton of savings yet.
I have laid out a rough draft plan that should allow me to acquire 35 rentals ranging from purchase prices between 65k-100k by the time I turn 31 years old with rental rates ranging from $850 up to $1300 a month (putting at least 20% down on each home with a conventional loan, depending on the condition trying to get a conventional rehab, and using the positive cash flow to pay down mortgages/use towards down payments on more rentals) I have read multiple books from millionaire investors such as Manny Khoshbin, Donald Trump, and the like. It seems that their general consensus on real estate investing is to buy distressed properties, rehab and flip them, only holding and leasing them in some cases (I do plan on purchasing only distressed properties, unless an amazing turnkey opportunity presents itself) The way I see it is, in the short term, flipping is going to make you money a lot quicker, but, being so young and acquiring numerous property's at a young age, holding/renting and having them paid off by the time I turn 36-38 (if the plan doesn't deviate too much) is going to allow for a huge cash flow, help me to build my portfolio even greater and allow me to invest heavily in commercial real estate. I do plan to flip a house here or there if a great deal presents itself, and use the money made from that to either pay off existing mortgages (unfortunately then having to pay capital gains) or purchase a few more rentals.
If you have read this far, thank you, and I am wondering if you can give any input towards what you have read, such as advice, or if you see a hole in my plan, please by all means point it out. I really appreciate it everyone and I look forward to connecting more with you guys!