Getting into rental property
I am trying to get some feedback. I have been doing a lot of reading and listening to podcasts on rental property. I wanted to get some open feedback.
I am looking to purchase my first condo to turn into a rental property. I am doing a house hacking process where I am getting a loan Thru primary resident and placing 25% Down payment. I plan on putting tenants in immediately as I live in my travel trailer. My cost of living is fairly low.
I ran the calculator on bigger pockets and have a 5% cash flow. I plan on placing payments on the principle of the loan monthly for the first year and have enough income to pay the loan off in 2 years. I am not touching 60% of the money for the rental as that is operating expense and that will stay in reserve for vacancy and cap expense.
My goal is to pay the property off in 2 years or very close to that then purchase another property and place tenants in there as well and have the tenants from the first property pay on the second and I too will place funds on the principle. Trying to do a debt snowball process. I am looking to do long term but and hold as I want to focus on getting 5 property with 75% paid with no loan balance in 8 years.
I was just hoping to get some feedback on my process. Anything would be greatly appreciated. Thanks for reading and responding. Have a great day. Happy investing.