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Updated about 9 years ago on . Most recent reply

New Member in Arizona
Hi everyone,
I just stumbled onto this website today via a couple of Youtube videos from the site. My family of 7 is supported by my full time graphic design job which (when you factor in the hours commuting) has me gone about 60+ hours a week. That coupled with some personal health concerns has me seriously looking into other options.
I'm looking to replace my income with rental properties, ideally within 5 years. I want to learn how to leverage my credit (singe my credit is high and my capital is low) to build a rental inventory.
The problem is that I'm plumb ignorant and have a lot to learn (and could use as much hand-holding as possible to get the ball rolling). I've got a lot of material to go over... glad I found this site. =^)
Most Popular Reply

Start licensing to podcasts too. I will say there is a ton of stuff to learn and you won't be able to learn everything. Don't get caught up in learning so much that you get analysis paralysis. I see a lot of new investors get to this point. You don't want to be careless with your money a jump into a bad deal but don't be afraid to learn the basics and execute.
"Cash on Cash" = rate of return on the actual cash you have to put into the deal such as down payments and acquisition costs.
"CAP rate" (Capitalization rate) = represents the rate of return on the capital investment. If you were paying all cash for a property this would be the rate of return. You essentially determine the NOI (Net Operating Income) and divide it by the purchase price.