What am I doing wrong?

[Ryan Berg]

Hello Everyone - Newbie here(obivously). I'm trying to break into real estate. Money isn't an issue per se as we just downsized our primary so we have money from that. I get the 4 pillars and honestly the STR tax loophole is very appealing as I still have W2 income. BUT, for the life of me I cannot find any STRs that actually cashflow with a mortgage. For example the place will be $600K and generating say $40K in revenue?? Am I just doing it wrong? Any pointers would be awesome as I'm almost ready to just give up.

Is this not possible and I need to hope for the other 3 pillars to outweigh the lack of cashflow? I've looked in Frisco, CO, Traverse City, MI, Ellicottville, NY.

[Marc Winter]

Hi Ryan, and welcome!

Congrats on starting on the road to freedom with real estate.  

Question: What's more important than finding your 'perfect' deal?  Answer:  patience and timing.

Without being patient, staying consistently on the hunt for a good opportunity, you might be able to stumble onto a winner--but that won't keep you in the game long term.

Always be looking, and when you do find the deal, pounce. That's the timing aspect; having your ducks in line so you are able to pull the trigger when you do spot the opportunity.

I've found that the most important part of real estate (besides your knowledge) is your mental attitude.  Don't quit, stay encouraged, and NEVER give up.  Every potential deal that doesn't work gives you more street smarts and brings you a step closer to that next big beautiful deal.

Lastly, real estate is a neighborhood business.  As a beginner, maybe concentrate on the area that you feel most comfortable with.  Become an expert in that one area you choose, and speak to as many investors, agents, contractors, sellers, and even buyers as you can.  You'll be amazed how leads will come from totally unexpected places.  

Hope this helps you a bit.  Looking forward to hearing about your first deal!  Best of luck!