Updated over 5 years ago on . Most recent reply
My strategy for starting to invest in RE - New to BP, Delco PA
Hi everyone, I'm new to BP and have conducted a lot of research through this site and books on getting started in real estate investing. I wanted to outline my plan for getting started below and get your thoughts/feedback on my situation.
A little background on me, I would consider myself a pretty frugal person and somewhat of a supersaver, I'm 28 and at this point I have zero debt besides my mortgage (100k) along with a 6 month emergency fund. I make a decent salary and am able to save 20-25k/year now that I have no debt, plus I have a roommate that is helping pay down the mortgage. My goal is to replace my income with rental income in the future, roughly 60k year. My current plan consists of the following:
1. Apply all of my savings towards my mortgage and am willing to get a second job to pay it down even faster.
2. After it's paid off next step is to start investing in my first rental property by either putting the mandatory 20-25% down for an investment property or making it my primary residence and putting down 3.5% or so and renting out my paid off house.
3. Aggressively put all savings/rent income into second property to pay it off and rinsing/repeating the process.
Effectively I would only be carrying 1 mortgage at a time which I would be comfortable with. I know this is something that is going to take time and won't be done over night. However, I was hoping to get some opinions on this strategy or just your general thoughts. I would appreciate any and all feedback, Thanks!
-Mike