20k to start, and 20k a year saving, what are my options?

Question

I am new to the real estate world and my current situation is as follows: I have 20k currently saved and am expecting to save another 8-10k by the beginning the end of May. I project that I will be able to save roughly 20k-25k a year for the next 3-4 years and then I would be switching jobs in which I would not be able to save as much (I want to teach in an elementary school). I currently live in West Palm Beach but have the ability to invest in Columbus, OH (where I am from) if the cash flow is better. My goal is to buy enough rentals and hold them to generate 3k/month net income with the rentals before I switch jobs. What are some strategies that would enable me to be able to buy 3 properties a year with the kind of money I have?

Allyssa McCleery · Answer

@Robert Ellis my hope is that as I continue onward I will be able to buy properties for less than 20% down, exploring my finance options as much as possible. I am definitely interested in buying MFH in Columbus but starting out I will buy here in West Palm. Thank you for your post I really appreciate the advice!

Allyssa McCleery · Answer

@Robert Ellis absolutely!

Robert Ellis · Answer

@Allyssa Mccleery when you do please reach out, we'd love to help!

Robert Ellis · Answer

It depends on a lot of things. I was wondering if you had a specific strategy like single family or multifamily? For columbus at least you can buy many different types of properties with that amount. You could by single families or smaller multi families and many different areas. For 3 properties a year assuming 25% down in columbus that would be 30k houses all in which would really limit your areas you could invest in. you could also pick up several smaller multi families between 2-4 units and 60-100k which is the strategy i would recommend.

Jon Huber · Answer

@Allyssa Mccleery Your goals are certainly realistic, however, it may be more about getting one or two with your savings, and then building equity within the properties. I hear great things about Columbus, as a friend invests there, but only to grad students of OSU. I think you can stay local, but that's for a longer discussion.

If you're interested, a group of us get together every month at the same coffee shop in Delray and talk about these topics. You can check my previous posts for the location, or I can send you the details.

20k to start, and 20k a year saving, what are my options?

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