How do I navigate a first time BRRRR while changing jobs?

8 Replies

Come April, I'll be returning from deployment with a good amount capital to start my investing journey. I would really love to ditch my previous job to be a REA as I believe I can earn more, learn more, and also enjoy work more. 

I initially want to brrrr and house-hack a duplex but I'm concerned that trying to brrrr while changing jobs will stop it dead in it's tracks. 

Has anyone dealt with this or are there any suggestions for getting around these circumstances? Any advice will help! 

@Bill Connolly, start making an action plan now so you are prepared for later.  You have your goal & strategy, now determine the tactics, tasks and milestones.  Arrange chronologically and set dates.  Commit to your goal and the dates you set.  You can definitely accomplish this!  BP has lots of tools and support to help you along the way.  

Good luck!

Thank you for the reply, the encouragement and advice!

Originally posted by @Andrew Russell:

@Bill Connolly, start making an action plan now so you are prepared for later.  You have your goal & strategy, now determine the tactics, tasks and milestones.  Arrange chronologically and set dates.  Commit to your goal and the dates you set.  You can definitely accomplish this!  BP has lots of tools and support to help you along the way.  

Good luck!

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Taking on a completely new business venture while being unemployed increases your risk of failure. It would probably be smarter to either stay in your current job until you achieve financial freedom through real estate investing, or to delay your new real estate business until you land a stable new job. Having proof of W2 income is kind of important if you will need financing for your purchase or refinance. Nobody is an overnight success in real estate. 

That makes a lot of sense. I am fairly confident that I would be able to land a job as a REA, although I understand it is not a w2 job.

Would I significantly decrease my ability to secure a loan if I were to become a REA? 

Originally posted by @Anthony Dooley:

Taking on a completely new business venture while being unemployed increases your risk of failure. It would probably be smarter to either stay in your current job until you achieve financial freedom through real estate investing, or to delay your new real estate business until you land a stable new job. Having proof of W2 income is kind of important if you will need financing for your purchase or refinance. Nobody is an overnight success in real estate. 

@Bill Connolly I am quite certain that once you pass the state license exam that you could become an agent with the largest, best brokerage firm in your city. That does not equate to an income. I am only being honest with you here, so please don't take offense. I am both a Veteran of 24 years and a licensed agent. I can tell you that the vast majority of my monthly income is from income producing rental properties. Not retirement, disability, or commissions from real estate sales. Your original post was talking about house hacking a duplex. There is nothing wrong with that plan. It is a very common practice, but it will not achieve financial freedom. You would need to own several cash flowing properties to safely quit your job and still take care of your family. Don't take my word for it. Go talk to real estate agents in your town. Ask them how long they think it will take you to make what you are making now. They will tell you that it could be 6 months before you get a commission check. What if there is another recession, as the news keeps telling us? Home sales would plummet. Don't take offense if I am trying to give a fellow Veteran the same advice that I would give my own son.

Absolutely no offense taken at all and I truly appreciate the wisdom here, @Anthony Dooley. These are all the intricacies that I need to learn and hash out. 

I wouldn't have a problem staying with my current job if it didn't eat up so much of my time. I'm an apprentice electrician and it takes me roughly 3 hours a day in commuting and two nights a week of schooling with very little pay. I don't want to do anything that will hinder my ability to get loans, and I also don't want to hold off investing. It's a tricky situation that I'll have to continue to hash out. 

Thank you so much for the sincerity and the time to chat.

@Bill Connolly I would stay in the same field until you buy the duplex. If you change fields the lenders are going to ask for two years of tax statements and pay stubs. You are likely going to be denied trying to change jobs and buy a duplex at the same time.

 @Amy Beth: 

Thanks for the reply! 

That is definitely what I'm leaning towards. Once I solidify my position in the duplex and feel as though I can pay the remaining expenses, I'll consider changing jobs. Then I'll run into the rush of not being able to refinance. Just a lot of pro/con and risk that I have to really become aware of.