If you were me what would you do in my situation?

12 Replies

I’m new here and have a few posts with some great feedback. Though I feel I should have started with this post from the beginning.

I’m 40 years old, single, no kids, no debt ($300.00 to $700.00 gets floated on my visa monthly), I have a good job making 85k annually (could be 95k by the years end), 10k in savings, and good credit somewhere in the high 700s to low 800s. I pay 1200 a month in rent with no utilities. I have retirement but only started my current job 3 years ago.

My situation is fairly decent except for my age. I got my act together a bit later in life. I want out of the rat race. I want cash flowing properties preferably multi family units. I do live in Maryland which is an expensive state to live. Would love to be able to leave my job and my state in the near future supporting myself and also building wealth with a minimum 7 figures goal. What would you do/suggest if you were in my situation?

Hi @Jeremy Willis ,

The first thing I would suggest is to learn to make a lean budget and save additional capital for investment. With how much you make and how low your bills are, you should be able to put away 2x to 3x per year what you currently have in savings. This indicates to me that there is a lot of fat that can trim, and while you can invest with no money down (read: other people's money), having a bit of your own makes life immeasurably easier. 

The second suggestion I have is to sit down and really plan out what you want. I often hear people say they want out of the rat race, want to make six fixture, be a millionaire, etc., but none of these ideas are sufficiently powerful or specific to make people sacrifice the needful to achieve them. If it were as easy as saying it, everyone would be rich! 

Finally, I would recommend learning all you can here and looking for a local mentor if possible. There are so many areas in real estate where you can carve out a niche, its important to find out what areas speak to you and will keep your attention long term. 

-Christopher 

Buy a primary residence, live there for a little while, then turn it into a rental and buy a new primary residence. Rinse and repeat

@Jeremy Willis

Invest all kinds of time in finding the right person and get married. Real estate, when done successfully, is overwhelmingly a team sport. I realize that's not the politically correct answer, and my nose is way up in your business stating that, but that's what the data supports about getting rich in America. Married couples in stable, long-term relationships are overwhelmingly in the majority when it comes to self-made financial success. The media likes to focus on the exceptions, but by doing so it radically skews the perception of decades of data that have been gathered on this. Don't believe me? Read The Millionaire Next Door by Thomas Stanley. It's an eye-opener.

Originally posted by @Russell Brazil :

Buy a primary residence, live there for a little while, then turn it into a rental and buy a new primary residence. Rinse and repeat

ABSOLUTLY  correct Russell and if it can be a duplex to four plex even better.. after  4 o 5 years you have 8 to 16 doors 

@Jay Hinrichs - this is my restart policy. I tell my wife if we had to restart, this is exactly what we'd do. Therefore, @Jeremy Willis that is what I think the majority of real estate investors on here would tell you. Take advantage of the favorable owner occupancy lending opportunities and grow from there.

@Juan Antonio Gallastegui Roca

I invest in some of the richest places in America in Montgomery County and DC. Hagerstown has tons of poverty, crime and a declining population, and an extremely anti landlord government. Its about the opposite of what I look for in an investment.

”Would love to be able to leave my job and my state in the near future”

Ok ..  so leave ... to a place with cheap cashflow real estate. 

Originally posted by @Russell Brazil :

@Jeremy Willis

I just wouldn't get too attached to the idea of multifamily in this area. Incredibly rare.

This is true, but it depends where you look. There are some really, really nice old town homes that have been turned into 2-4 unit buildings in Baltimore. The Charles Street corridor, from downtown to Charles Village, has a bunch, but you can also go to Bolton Hill and Reservoir Hill as well. Purchase something, rehab it, live in one unit and rent out the other 2-3.