Is $130k per year job enough to get started?

Question

WARNING! New guy question. Proceed with caution ;)

All kidding aside, I've been reading about rental properties for a while. However, a lot of articles mention that the person (or couple) saves enough for a new rental every 12 months.

So here I am, $130k salary, thinking "how do I save $50,000 every 12 month".

Just curious - is it because these people have very generous salaries ($200k+ per year) or is there something i'm missing?

Thanks for your time and sorry for the "new guy" question.

Jeff C. · Answer

We pretty much all started on less. Get it done.

Account Closed · Answer

Well, the median income in the US is something like $50K for a family of 4. So theoretically you could save $50K per year if you put your mind to it.  Unless of course you live in a really high cost coastal city in which case it may be harder.

Account Closed · Answer

I second @Rick Tirm.  It's all about how much you keep.

Start working on some side hustles in your spare time.

Nik Moushon · Answer

Both my wife and I work full time and don't make as much as you. You could easily put away 50k a year. Obviously I dont know your expenses and life style. Even though you dont need to do that to get started.

Anthony Wick · Answer

Leverage. Not sure why a person needs $50k cash to buy. 3.5% down FHA loan on a multi family. 12 months later, move out and buy another property. I got into a duplex for about $7k out of pocket. Now, that is in the midwest, and we don't know where you live. I put 20% down on the rest of my properties. Shop around for local lender and get the best deal. $130k salary will get you a lot of offers (depending on your debt of course).

Kiera Underwood · Answer

In OKC you can get into properties with good rates of return for 15k. If you diversify where you're looking to buy, you could be looking at having to save less!

Josue Vargas · Answer

The question you should ask yourself is how much available cash you have right now and how much you could save to get your first deal done.  $130K is a good salary for most US cities, like other said, it will depends on the city and cost of living, expenses, etc.  It's all about what type of investment you want to pursue, your credit history, availability to pay the loan, etc., etc.,   I'm assuming you don't have the $ to buy cash, since you are asking here how to get started.  It is not matter if you have a salary of $1M, but how you manage your money.

Good luck.

Is $130k per year job enough to get started?

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