Thinking about cracking the rental market and working in real estate.

4 Replies

I am thinking of becoming a real estate agent and also had some questions about rentals.

First I know I wont make money as an agent the first 6 months(and lose some as well). I have a spouse who makes good money(~150k per year). I also have plenty of savings to hold me over.

I will be moving to a college town so rentals are hot in the area but competitive as well. I have about 140k saved up in retirement accounts and so forth. Obviously this isn't all on the table but the money is there for safe investments. My thinking would be to borrow with 20% down with positive cash flow goal of $500 per month which is doable in the area. I'd like to build up to 7+ properties.

I plan on starting another career in about 3 years and at that point I would pay down on the properties more aggressively to pay them off and get more cashflow in my pocket.

I feel this is a better investment both short and long term vs getting my real estate license but this will allow me to work in the industry and save money on purchases.

I would manage the properties myself and even make repairs as well(I am very handy).

Seem feasible?

Would you skip the real estate agent step and invest all your time into the rentals?

I think that you would do better focusing on your investment goals, renting, and property management, this is a full time task. The time it will take you to get in to real estate and get started branding and building yourself as the go to agent for anything of interest to you, you could have hired an agent to do all the work for you and you can put your time in to building your real estate empire. There is not that much you will be saving. From a Real Estate agent to you.. this is just my opinion.

@N.A N.A


$140,000 is quite a decent chunk of change.

There are quite a few things one can do with such funds here on the Midwest.

Some amazing value here at present.

I believe you can comfortable invest those funds and get 20% net returns of you do the work yourself.

Our group is buying quite a lot of properties in Toledo at the moment in solid B class areas.

I have a business contact in Florida that has been asking me to visit him and I am yet to do so.

I was always interested in the market there but believe it has taken off quite a bit in recent years.

Thanks for reading and have a great day.

Thanks for the input.

I think I will also pursue getting my real estate license since it will only cost me about $600 and can stay inactive until I want to buy a property or do something worthwhile with it.

I would definitely get your license. It's the cheapest and easiest investment you will make in your real estate career and it will open up a lot of options.

You will have access to the local MLS which is more up to date and has more powerful search tools than most RE websites.

You will get a 3% discount on every property you purchase.

When a new property comes on the market you will have instant access instead of waiting on your agent.

You don't have to hassle with a Agent when it comes to writing countless offers.. I hate inconveniencing people and truth is most of the properties I write offers on are not accepted. I probably write 10 offers for every 1 that is accepted.

You will gain a better understanding of the laws involved with real estate.

Last but not least you will undoubtedly make money off of being a agent. Just tell all your friends and family and eventually they will need to buy or sell something.

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

Lock We hate spam just as much as you

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here