Starting out with $75,000. What should I do?

Question

I'm starting out in real estate with $75,000. My goal is to build up enough real estate within 5 years to generate an income of $10,000/month (to retire). Does anyone have any suggestions on how to get started and what strategy I should use to get myself there? Is it even possible with that much starting capital?

Marquez Griffin · Answer

@Zach Medina Hey Zach! Once you've done the goal planning and such as the othera have mentioned, you should check out the Bp Real Estate Podcast #327. It talks about BRRRR investing which stands for Buy Rehab Rent Refinance and Repeat.You buy a peoperty that needs some fixing, fix it up, rent it out for more than your mortgage payment [well over if possible], go to the bank and refinance, then repeat. You are in a good cash position to BRRRR. Start analyzing deals, look for a property in distress (but a property with not too much structural damage). Just remember that sometimes it's best to BRRRR in a different state if the market you currently are in is super expensive. Good luck!

Aaron Zimmerman · Answer

I would start by reading the Ultimate Beginners Guide and try to hone in a strategy. After that, attend some of the free webinars on BiggerPockets and decide.

I'd also recommend reading several books and/or listening to podcasts from BP, Chad Carson, and Paul David Thompson. I think all can provide some value!

Tim Herman · Answer

@Zach Medina you have to work backwards. $10000 per month/$100 per door you will need a 100 doors in 5 years. If you cash flow $200 per door 50 doors needed. If i was doing it over I would house hack. Small multi 2-4 units. Minimum owner occupied, less than 5% down. Move every year for 10 years have between 20-40 doors.

Angelica M Garzon · Answer

Hey Zach,

Congrats on your first step to financial freedom, deciding to take action!

When I first started investing I made it my goal to learn as much as possible, through that process I came up with "my best strategy" to reaching the exact same goal that you have.

There are multiple ways to make your $75,000.00 last you a long time by reinvesting the same cash using the BRRRR strategy but it all depends on the market you want to invest and the type of real estate you want to buy.

I would suggest you read Brandon Turner's book on rental properties to develop a base with lots of different strategies and information to developing passive income. Also, David Green's book on the BRRRR method and lastly Crushing It in Apartments and Commercial Real Estate. I make these suggestions because they all explore very different types of real estate investing and passive income creation. There are a lot of other personal finance books that will help you reach your goal faster.

Good Luck!

Jake S. · Answer

Hey @Zach MedinaFirst off, I'd start by absorbing all the information and knowledge that you can on BP and through podcasts/books.Second, Define your goals and create a roadmap on how you will get there. I highly recommend BP's 90 goal plannerThird, start networking and building a team. A team would consist of a Realtor, Property Manager, CPA, Attorney and Contractor.Fourth, start taking action!!!What are your current goals by the way?