New rental investor strategies

New rental investor strategies

Rental Property Investor 路 Berkeley, CA 路 Member since 2018 路 30 posts 路 18 votes

Hey guys, I am very new here this is my first post.

I want to invest in rental properties and my first goal is to achieve around 5k passive income from rentals.

Right now I have a good income and maintaining low cost of living, so while things are this way I want to invest aggressively. I am able to invest let鈥檚 say about 25k every 6 months.

So my current thinking is to buy 80-100k houses in Midwest with 800-1200 rent a months. Put down 20% and finance the rest and keep doing it for the next few years. In about 5 years or less I acquire 10 houses and start to pay them off one by one and when I am done I am at my goal.

I know I am new and maybe my plan has flaws but I might be able to correct my course as I move forward. I am not looking for easy or quick money just want to build financial independence for my future. I might not make that much money in future or may start a family and have much less funds to invest so you get my point.

Also, right now I don鈥檛 know how to target my future purchases for now I am planning to use Roofstock but also would be glad to meet real estate agents who I can work with.

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SACRAMENTO, CA 路 Member since 2018 路 144 posts 路 76 votes
7y

@Mikhail Katz

Welcome to Biggerpockets Mike! 

Have you looked into any specific markets or states?? 

Here are three major things I look for when picking an out of state to invest in. 

1. Know your strategy.... High Cash flow or more appreciation? This will make it easier for you to research just for Markets that focus on your personal strategy.

2. As an OOS investor, you want to invest in markets that have low property taxes, landlord-friendly laws, and a growing economy(more rental demand).

3. Find a few good property management teams in the markets, get in touch with them and get a feel of what they have to say about the market itself. This will allow you to get a better understanding of the market from different sources. 

Good luck!

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  • Charleston, WV 路 Member since 2017 路 113 posts 路 50 votes
    7y
    @Mikhail Katz Choose a couple of cities and contact a couple realtors in each city. Have them forward you a list of properties with your specs and start analyzing what鈥檚 available
  • Rental Property Investor 路 Nolanville, TX 路 Member since 2008 路 130 posts 路 88 votes
    7y
    @Mikhail Katz that's exactly what I'm starting. Slow and steady but reinvesting my profits while I'm working. In my area I can pull $1k/mo rent on about $75k homes. Looks like you have a good area.
  • Rental Property Investor 路 Berkeley, CA 路 Member since 2018 路 30 posts 路 18 votes
    7y

    @Bradford Clark

    Thanks I don鈥檛 really have particular area in mind maybe I should research and focus on one.

    @Matt Brown

    Thanks, sounds good. But I am looking to invest out of state. I live in Bay Area and there is no market for rentals here at least on my level.

  • SACRAMENTO, CA 路 Member since 2018 路 144 posts 路 76 votes
    7y

    @Mikhail Katz

    Welcome to Biggerpockets Mike! 

    Have you looked into any specific markets or states?? 

    Here are three major things I look for when picking an out of state to invest in. 

    1. Know your strategy.... High Cash flow or more appreciation? This will make it easier for you to research just for Markets that focus on your personal strategy.

    2. As an OOS investor, you want to invest in markets that have low property taxes, landlord-friendly laws, and a growing economy(more rental demand).

    3. Find a few good property management teams in the markets, get in touch with them and get a feel of what they have to say about the market itself. This will allow you to get a better understanding of the market from different sources. 

    Good luck!

  • Rental Property Investor 路 Berkeley, CA 路 Member since 2018 路 30 posts 路 18 votes
    7y

    @Subbie Kaur

    Hey Subbie very good tips, thanks for taking time to respond! 馃檹馃徎

  • Retirement Accounts Attorney 路 Southfield, MI 路 Member since 2017 路 3k+ posts 路 1k+ votes
    7y

    @Mikhail Katz

    Welcome to Bigger Pockets. You have come to the right place to network with others.

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