High Income Family Looking to Start in REI Full Time

6 Replies

I am looking for some advice on how you would get started if you were in a high income family.  My wife is an active duty military doctor and I am a veteran myself.  I am finishing up my degree from Old Dominion University in finance with a concentration on RE and a minor in civil engineering technology.  We are not looking at buying revenue streams, because most houses would cash flow well with a 50% down payment.  With my education though and not having to "sell or starve", I figure it is best to work within the RE industry.  The goal is to work my way to BRRRRing as much as possible in multifamily.

With that said would you get started in property management, mortgages, appraising, or as a commercial (multifamily emphasis) or residential agent?

Are you looking to invest in the States or in Guam?

You are throwing alot of ideas into the mix so trying to figure out your objective, career or investment or both.

Being a property manager, agent or appraiser as a full time endeavor is very different skill sets.

Buying and fixing a property is a different and better angle. IF you or your wife already have a job that w-2 is your best source for financing. Being an agent or appraiser usually you do not get a w-2 and if you are self employed it usually takes about 2 years of tax returns to verify income. BRRRR only works if you can find a property discounted enough and 2 if you can get enough equity to refinance. Both scenarios you need decent credit and regular income.

I dont have any knowledge about investing in Guam but if you are a veteran and you can possibly use your Veteran Loan to buy something with zero down. They even have a Veteran Loan Rehab for buying and fixing a personal residence.

Thats where I would start. Buy a slight fixer in your area, fix and occupy for 2 years and you can sell and do all over again tax free. Tell your wife we are moving every two years. Its a 2 year flip.

Even works with VA for 2-4 units. You have a great opportunity to use your VA loan.

DM me I have a few creative strategies depending on your area and objectives that can help you "house hack" your way up.

@Rob Massopust I was trying to keep the post short, but here are some details about my current situation. I already have 3 properties that we bought with a VA loan. 2 cash flow and we live in one now. My wife would not be ok with a house hack. She has a hefty W2, is not looking at leaving her job, and we are not staying in Guam. This was just her latest assignment. I was a fire fighter, but had to leave because of our move to Guam. So, now I am looking at these as a possible career, but also as a stepping stone to a more aggressive path to investing. By asking about all the different career choices, I trying to find out which offers the most advantages. My gut says starting in multifamily property management is the best approach for the long game. Being able to BRRRR all my money back out for another deal would be ideal, but my end goal is to buy and hold for the wealth and cash flow.

I wouldn't go the route of becoming a PM unless you're really interested in that. If you want to do BRRRRs, just focus on that if you can get by on one income. 

I'd divest into a different income type.  High income earner to me means high tax payer. 

PM, appraising, brokering, etc just piles more ordinary income on top of your already high ordinary income. 

I'd buy and hold property with low land value specifically.  Most of mine depreciate at a 97% improvement ratio. Condos are at 100% I'd imagine.  Reduce ordinary income. Be a high income keeper vs earner 👍

@Taylor L. Thanks, so being a commercial agent is probably my best bet to learn more on other people’s money?

@Steve Vaughan my wife and I were just talking tax strategies this morning. A lot of doctors I’ve met aren’t the most financially savvy, so I was happy to hear her ask. I’d like to be an earner and keeper. It sucks to make good money and pay a lot of taxes, but it’s not a bad problem to have. I actually really like the condo idea. But really what I’m trying to get at, which RE profession is going to shorten the learning process the most.

Originally posted by @Rory Compton :

I am looking for some advice on how you would get started if you were in a high income family.  My wife is an active duty military doctor and I am a veteran myself.  I am finishing up my degree from Old Dominion University in finance with a concentration on RE and a minor in civil engineering technology.  We are not looking at buying revenue streams, because most houses would cash flow well with a 50% down payment.  With my education though and not having to "sell or starve", I figure it is best to work within the RE industry.  The goal is to work my way to BRRRRing as much as possible in multifamily.

With that said would you get started in property management, mortgages, appraising, or as a commercial (multifamily emphasis) or residential agent?

@Joel Owens   I would do what Joel has done.. created a career in commercial real estate.  Your in perfect position to do this since you dont need instant income and can build your business over time.. 

 

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