I made the crazy decision to leave my job in medical sales with no plan other than knowing I want to start investing in real estate. My hubs has a good w2 job so we can still qualify for loans. We also have $ saved we can put down, or furnish a home with, etc. That being said, in your opinion, what's the best way to get started? Rentals, flips, BRRR, airbnb?
I see you're a realtor! In my opinion, I would do as many multi-family and otherwise open houses as I could and network my pants off. Go to every meetup and every coffee connection I could until I found an opportunity I couldn't pass up. This is double-effective, because it helps you build your network of lenders, handy people, contractors, title partners, private lenders, etc who...if the proper relationship can be developed will show you what the MLS can't. Just my 2 cents :) good luck!
House-hack + AirBnB (STR) + BRRR
Buy a multi-unit property that you can live in one unit and rent out the others as an STR -- depending on where you are in Rochester there are some great opportunities. Or add a granny flat. Or split part of one house if there's a part of the house that could be split off without feeling weird.
For example, a friend of mine got divorced and didn't want to live in an apartment complex that he owned so he bought a house that had a "hobbit hole" basement that's like underneath the main house and opens up to the back yard and pool. It's actually awesome. Then he rents the five bedroom house as an STR that covers his mortgage and puts like $6K in his pocket each month.
In fact, since you're in medical sales, you might have an edge on finding STR properties that are near hospitals or universities. I bought a property in Portsmouth, VA because it's across the river from Norfolk VA Hospital. And my renters are mainly families of military members that are, unfortunately, in the hospital for an injury.
Until I bought that property, I always thought of STRs as solely "vacation rentals" but now I know that there are other strategies.
Good Evening Allie,
I commend you having the courage to do what was in your best interest leaving your W-2 job. In my opinion, I think it's important to devise a game plan that works for you and your family's goals in real estate. House hacking can be a viable option granted you're willing to have a neighbor either in a separate room or duplex. Personally, I believe in the BRRR strategy as a great way to start as this option can lead to a flip or buy and hold rental. Just as @Jeff Schemmel mentioned, I wholeheartedly agree that meet ups and networking within your community is sound advice. BP (Biggerpockets) has a calculator that can help you with your calculations as well when revising for deals. Good luck!
@Allie Foland I’d owned a bed and breakfast for 24 years but had started working a W-2 job too knowing that the day to sell the B&B was fast approaching. An opportunity arose to buy a duplex, they are rare in my locale and I snapped it up with the intention of house hacking it.
Fast forward two years later and I’ve got a great tenant that pays many of my living expenses and I’ve sold the B&B.
I can't recommend house hacking strongly enough, my second B&B was more of a STR with our guests typically being corporate clients who often stayed 15-20 days.
I’ve always enjoyed it and never minded having people in my home. The total separation in the duplex is nice too. Either way it’s nice generating income from your home.
Lookup Robuilt on youtube for all the info you'll need on an airbnb business. BP Podcast 492 as well...
Good luck, and let us know how you do.
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