I feel like I'm at the point where I need some advice. I've read all of the Robert Kiosaki books, I've read lots of forums about rental properties. I've saved 20k. I'm really tired of working every day. I make 75k per year at my job. Pretty average.
I feel like there's a lot of enthusiasm for rental properties, but to be honest, it all seems really overwhelming and I never actually feel comfortable starting.
What I would like to do is replace my 75k income with passive income. I'm 37 years old, and I feel like I'm getting too old to deal with the hassels of tenants and fixing places up.
I guess I'm overwhelmed with all this information and I'm not sure where to start and what to do. I feel like if I was in my 20s I'd have a lot more time and a lot more energy and would be willing to take more risks, but now that I'm older, I'm not sure what the best path is going forward.
Need some down to earth, step-by-step advice, I feel like. Kiosaki is a great motivational speaker, but after reading his books, I always find myself asking... OK, what do I need to do first? How do I do this?
I think I understand you perfectly. But you shouldn't be scared of investing in real estate. At 37, you have the right age, you have the right income. However, don't set too high expectations. Start small! Start by putting your personal finances in order and plan for this investment, especially if it means a second mortgage. It's ok to read a lot about real estate and learn the terminology, but I think Robert Kiyosaki and other investment "Gurus" make everything seem easier than it actually is. Don't blame yourself for not being as successful as him/them! Assets such as rental properties are good, but that doesn't mean you should stop working. Maybe investing your $20K in stocks and bonds could be less stressful and won't generate more debt on your side.
Hey @Raven Home !
It sounds like working with a more turn-key like company that handles a lot for you would be the best. How this would play out in my experience would be buying a property with maybe 8% rates of return, and making around $200 a month.. depending on the rate you get.
House hacking might give you better rates of return, but that only works in some markets. Where do you live & would you be willing to move to one side of a duplex?
Hope I'm able to help some!
This is it. You're standing at the the crossroads that separates the dreamers from the do-ers.
It's your time to do. Start analyzing deals. Have some hard numbers to hit, and only take the absolute best thing you can find. Analyse one a day, minimally. It doesn't take long once you get it down. Some say it takes 100, some say it take 1000 random analyzations to find a deal. You may get lucky on your first, but you won't get lucky without some due diligence.
Write a generalized business plan, so you know what your intentions and objectives are. Then just march forward and tick the boxes.
Action is the most important thing you can do at this point .
There are plenty of step-by-step guides here on BP. Check out the book store, the blog, and the webinars. You'll find something.
If you don't want to self-manage, find a PM. You don't have to deal with tenants and rehabs if you don't want to. I've found turnkey deals that cash flow. The numbers aren't huge, but considering I was only 27 when I bought it, it'll make me plenty of money if I hold it for 30+ years. Investing can be as active or passive as you want it to be.