Fastest wag to build passive income?

[Lauren Perry]

Hi all, Looking for your advice as my husband and I get ready to launch our real estate investing to the next level. We have recently decided to sell our home and move into a flip property we rehabbed. This decision was reached to allow us to reduce our housing expenses and pull the equity out of our current home to use for new investments (and to avoid the capital gains on the eventual sale of the flip). Once our home sale goes through, we’ll have approx $75k in equity to use. We also have a rental property in Oregon that is cash flowing and has approx $100k in equity. I work a FT W-2 job and my husband has a self employed consulting business. Assuming we just have the equity from our current homes to work with, what strategy would you employ to maximize passive income? We are interested in the BRRR strategy but housing in our market is quite expensive and In short supply so we’re considering sellIng our Rental and doing a 1031 Exchange to invest in a less expensive market like Indianapolis. Does this seem prudent? Would you invest in multiple single family units or try to find a multi unit property and acquire more doors all at once? I realize it all depends on the deal and the specific market, just wondering where you guys would lean given the resources I have to work with. Feeling a little uncertain with all of the options out there but we’re anxious to get started and grow our passive income! Thanks for any and all feedback.

[Marisa R.]

@Lauren Perry

Hey Lauren

I am finding it difficult to buy true cash flow properties, as many markets have risen considerably.

I started in Atlanta in 2011 when distressed SFH were selling for $35,000, today average value of $170,000. This market will be difficult to cash flow today, and competition for multis is insane.

I am currently playing in the Detroit market where I believe I will repeat what I achieved in Atlanta, and continue to grow passive income.

You may find my post on....."Detroit the come back kid" worth reading? 

Don't know? It will come down to your risk profile

Detroit wont be for everyone, however what I am seeing is a market that is starting to boom. Appreciation will be a given as long as you buy in decent neighbourhoods. 

Also got to understand the true numbers, no fluffing the fluff. Get the ground work right and I believe not only will you achieve passive income but you will also see appreciation, already happening.

All the best

Marisa Rowe

"Hard Work Never Killed Anyone, but why take a chance