New member to BiggerPockets, and looking for some overall advice on how to get started. A little background: I am 47, and just recently retired. I have had several rental units over the years, and am somewhat experienced in that component of RE investing. I have also flipped 4 houses in 2014. So, some experience there as well. I squeezed this "part time" activity in around my 60-70 work weeks. Now that I am free of that commitment, I am making RE my full time career. Obviously, I have some options and my thoughts right now are as follows:
1. Continue to rehab and flip SFH at the rate of 1 per quarter, while I learn more and get trained on the other options in RE investing. Move that number to 2 per quarter in 2016.
2. Start to pick up some buy & hold rental properties for that passive monthly income that is crucial in between the big flip pay days.
3. Once I get more knowledgeable on the subject, start wholesaling deals. Time frame: 9 to 12 months from now (4th Q, 2015)
4. Ditto for lease options/buy to own. Get trained and comfortable, then ease myself into this. Time frame: an additional 9-12 months. (4th Q, 2016)
I would appreciate any comments, feedback, anecdotes or general advice on whether this seems to be a practical strategy moving forward.
Hi@Joe Hughes and welcome to BP!
I personally love buy and holds. Passive income is (in my opinion) simply the best. Having money in your pocket every month is a great feeling. Congratulations on retiring!
Congrats on being able to quit the day job at 47. That's awesome. I think it sounds like a solid plan but it seems like if you were doing 4 flips while working it seems like you could have more bandwidth, so why not challenge yourself a little more?
Also, how are you find your flips?
Keep doing the flips until you realize you can make as much with a year or two in rents to match the profit on the flips.
Start a rental empire of cheap houses.
How do you flip houses working 60-70 hours a week?
Welcome @Joe Hughes . Plan looks good and even better that you wrote it down!
Congrats on going it on your own! As @Chris C. asked, I would love to hear how you pulled of 4 flips a year working similar hours as I do. I'm hoping to buy and hold four this coming year with 60-70hr work weeks and weekends with my kids. Flipping a home is a stretch goal for me with this schedule.
Thanks for all of the great feedback guys ! It is much appreciated and gives me some clarity on my plan going forward.
To answer some questions posted:
Where do I find flips to buy? It's been all auctions so far. 2 have been from a Sheriff's Auction and 2 have been from Auction.com. I just bought three more properties this week alone, and 2 of them have been from Auction.com and 1 was a FSBO. The 2 auction properties will be rehab and flip, and the FSBO is a Tri-plex that I am going to hold onto as a rental.
How did I find time to flip houses will working 60-70 hours per week?
The simple answer is that I was partners with my brother in a family-owned business and I had a lot of flexibility. Yes, I worked VERY hard and VERY long, but if I needed to go to an auction at the courthouse, I was the owner and I could do that. Also, the time spent working was rarely behind a desk. I was in the field a lot.
Thanks again for the great advice !!!
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