Entry to real estate, 5 year plan
Hi all, I'm a 23 year old real estate novice and after thinking (and truthfully I've been thinking about this for months) for a little while, I wanted to write out my 5 year goals, and realistic expectations.
In the next month or so I will (fingers crossed) close on a house in a B neighborhood surrounded by A and B neighborhoods. I'm purchasing said home for roughly 37$/sqft. Comparable homes in the area are selling for 50$ /sqft or more. All in all it appears no major repairs are needed, just cosmetics. In the next year I plan on getting my Real Estate Sales licensing.
Realistically after Piti, utilities, savings, misc repairs savings, I should be able to save up around 7500 per year. Within the next 2 years I would like to add a duplex to my.. Portfolio? With 15k after 2 years I should be able to purchase a duplex in a b neighborhood in my area surrounded by b and c neighborhoods. ( currently many are selling for 60k or less, obviously can't predict the market but I think I have a good shot). I would move into this duplex and rent out the SFH for (comparable houses ~1200 per month). Within 2 years of that I would plan on doing the same in a second Duplex.
Sorry if this is the wrong place for this, I just wanted to write out my plans. Do these seem realistic to you? Would I need to revise them?
Most Popular Reply
Welcome to BP @Matt Scott! I think it's great that you have a solid goal and a map to get to where you want in 5 years. My wife and I do very similar goal setting and we have had a lot of success because of it. I think the important thing is to be ready to change/ pivot if conditions change or your goals change. Just because you planned it now doesn't mean that your priorities or goals won't change in the future.