Need some advice about rentals or other investments

4 Replies

Hello All,

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?

@Raven Home don’t take this the wrong way, but maybe buying rental properties is not the right move for you. I’m sure your a hard worker, but it doesn’t sound like you want to work - don’t buy rental property if that’s the case. You don’t make enough money to pay someone to run it for you profitably, and if your not willing to put in the extra hours after work once you’ve acquired the unit to get it rent ready and producing, your just fooling yourself. Maybe figure a different way to invest in your money to replace your income. On the other hand, roll up them sleeves, find a broker to help you locate a condo in a good location that is rentable, and jump in the game that way. I suggest a condo because the maintenance is minimal, the sq ft is limited, so you’ll be able to control your expenses (typically) better. You’ll learn all the basic of owning rental property with a pretty minimum exposure. The numbers will suck because of taxes, HOA dues, but you should be able to write off your expenses and perhaps minimize your tax liability from W2 just a little bit. Good luck
@Raven Home First of all, take a break from beating yourself up (don’t worry, you can go back to it right after this!) and give yourself some credit. You’re here. You have already started. Everyone reaches the point where they feel they have the knowledge they need to succeed, but can’t quite cross that threshold into actually putting into action. What you need to get started is what the end game will give you: confidence. Which I know, is paradoxical. There is a TON to know about real estate, so I’d be worried if you didn’t feel overwhelmed. Think of it as a task like vacuuming your entire house. Faced with this chore, it is easy to feel exhausted with the mere thought of it’s entirety. It seems impossible. But what if instead, you focused on one small corner, maybe 2sq ft. All you have to do is that one corner. Then you have already succeeded. Too often we wait until the end to celebrate. But why not celebrate the start? I agree that reading Kiyosaki is very inspirational and can get you moving in the right direction. But what you need are actual tangible actions, not just attitudes. What are your real estate goals?
@Raven Home I think your feelings are understandable. If you're willing to stick to your criteria (padding for property mgt), I'd expect to swing the bat a lot more times, but so what? What's the rush?

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