57 years old and just started buying rentals. Any ideas?

Question

57 years old, recently gave up on 401K (interest rates are terrible past few years) and got 1 family home rental. A more stable of building wealth is to have as many rental properties as possible before I'm forced to retire from my physically demanding job, The safer route seems to be to pay off the mortgage rental as fast as possible, which I'm doing. Then, I'm not sure if I want to go the safer route and save for another rental (from the income of my full-time job and the 1st rental) or finance the 2nd rental (and have two rentals and my income pay it off). If my area didn't have houses For Sale on the market for so long, I would fix and flip. So that option is out for building wealth and buy rentals faster. Any other low-risk options or should I stay on the track I'm going, pay as I go??? Thanks

Account Closed · Answer

Hi Duane, you don't state where you are located so the numbers may be different but I just helped a guy in your situation and I write about it in a post and show the numbers in a spreadsheet. It might give you some hope and some ideas

https://www.biggerpockets.com/forums/600/topics/58...

Jonna Weber · Answer

Hi @Duane Whittaker - congrats on taking action.  If you can handle the lower cash flow for now...you might consider financing while you qualify from your job, and taking a shorter mortgage.  All the best to you...even that one home will make a difference, no doubt...but it sounds like you are on to more.  If you can finance 3-4 in the next couple of years with traditional financing at low interest rates, vs. 1 paid in cash, I would personally lean into that idea.

Al Williamson · Answer

@Duane Whittaker your approach sounds good. And... isn't @Jonna Weber a smart lady?

Let me add some other ideas for your consideration.

1 - Consider a getting a 30 year loan and using a Home Equity Line of Credit (HELOC) to accelerate the payoff. Google around for the details. George Antone books are great at explaining this technique.

2 - Consider using a self direct 401K so you can take advantage of all the MANY benefits. Again, Google for details.

3 - Consider renting other people's properties and converting them into short-term rentals (month long stays). These are easy to manage and typically kick off +$500/month. This is the least risky option.

Anyway, I hope that helps.

Duane Whittaker · Answer

Thanks, Jonna Weber. I will consider that.

57 years old and just started buying rentals. Any ideas?

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