I'm brand-spanking new to real estate...long story, but here's the short version:
Wife and I are high income earners with a combined income just over 7-figures. Getting destroyed in taxes, etc. I went searching for a house to buy, market way too competitive, so started leaving letters on people's doorsteps and a few hit! As the deals progressed, inspectors and lender's kept asking me if I'm a wholesaler or flipper and they never heard of regular people doing that. I didn't know what a wholesaler or fix and flipper was, so I started reading, which led me to this community. Then read some books and really started looking at rentals, but was put off by one detail:
It seems like most people are working to earn a passive income of about 100k, taking 5-10 years to do it. Well, even with the tax benefits of real estate, I need to replace about 500k plus before I can even think about quitting. (Reason for quitting: I work 90+hrs/wk, about to have a kid, and hate the idea of missing out on them growing up).
I did more digging and people told me apartment investing was SFR rental's on crack...economies of scale, better financing terms, more options, easier to raise value, etc. So far this seems to be true.
That led me to read lindahl's multifamily millions and emerging real estate markets, brandon turner's books, investing with no/low money down, and lance's book on multifamily investing, which were great and informative. I also read a few others which were OK and didn't add much information. I'm now rereading lindahl's book to take notes to build my action plan, and reading commercial real estate due diligence handbook.
I'm aggressively saving money with my wife (her portion goes to traditional investments) whereas mine will be for real estate investing. I'm hoping to put in about 200k each year on a deal if possible.
1. Is it reasonable to replace high incomes with multifamily investing in 10-15 years?
2. Is this a reasonable path or are there other avenues I ought to look at? I started talking to SFR rental guys and they told me this was a waste of my time, I'm better off making more money at my job since it'll take forever to replace my income with just houses. A few led me to apartments and that's why i'm here, wondering if I'm not exploring other opportunities that I just don't know about.
3. Any advice/resources that you recommend?
If I was you I would work backwards. Figure out what kind of lifestyle you and your wife are comfortable living. How much money per year in passive income would get you there (you mentioned $500,000). Then reverse engineer a plan to help you achieve that goal. I would not use SFR to get you there... you realize how many SFR you would need to get you $500,000 of passive cash flow? Waaaay too many. I would probably only invest in bigger commercial apartment complexes since you guys probably have a lot more money to start than most people. Definitely use leverage though, not all cash. Figure out approximately how much money per door you will receive in cash flow on bigger apartment buildings (make sure to add in property management fees, future repairs, and future capitol expenditures). Then estimate approximately how many doors you would need to reach your $500,000/yr goal of passive cash flow. Then start making a plan to make this happen. Usually the more doors per apartment building and/or the more money you put down, the more cash flow per door.
You could also look into buying businesses (owning them, not running them), good old fashioned stock market investing (not retirement accounts, im talking brokerage accounts so you can actually use the moeny before retirement age) , cryptocurrency investing, or a mixture of all of them. I hope this helps! Good luck.