Starting my REI journey!

[Virgile Valente]

Hi everyone, 

I'm starting my REI journey, targeting long-term rentals with a goal of $10k/mn cash flow in 10-20 yrs, but first I need more education!

Inspiration for this journey started after I was laid off late last year after almost 10 years with a well known semiconductor company. It dawned on me that working to survive and save up for retirement was all but a dream, and could be ripped away any moment. From this incident, I started to educate myself on financial independence, starting with Rich Dad Poor Dad, which was very eye opening. This book showed me the potential and security of REI, when done right.

Currently, I am reading The book on Rental Property Investing, by Brandon Turner from Bigger Pockets. It lead me here! 

I'm an engineer by trade, very analytical and numerically driven - I believe the math and calculations of REI investments may be the most important aspect before pulling the trigger on an investment, but understand there are many more factors to consider as well, such as population growth, jobs, crime, etc.

As I continue to learn and educate myself on REI before taking the plunge, I would love guidance and advice from experts and professionals that have already traveled down this path.

I am drawn by the low barrier of entry of markets like Montgomery Alabama, and also considering Section 8 rentals (pending Trump admin changes).

Do you have experience in this market?

What is your advice to a fresh new rookie like me?

What were some of the early mistakes you've made or could have avoided?

Thank you for any advice and support, I'm really excited to join this community and get more involved.

-Virg

[Melissa Justice]

@Virgile Valente,

Hey, welcome to the BP community and huge respect to you for diving into real estate after a tough life moment. A lot of us had that “wake-up call” where we realized the traditional path of grinding for X amount of years and hoping for a stable retirement isn’t guaranteed. Sounds like you’re already flipping that script in a smart way.

You're off to a great start with your education - "Brandon Turner's Rental Property Investing" book is basically required reading, and your engineering background is going to give you a strong edge when it comes to analyzing deals. That said, I completely agree - there's way more to REI than just the spreadsheet: neighborhood trends, tenant base, property management, exit strategy… it all matters.

On Montgomery, AL & Similar Markets:
I actually work with investors who buy in AL and other **Midwest/Southeast markets** — think Birmingham, AL, Cleveland/Dayton, OH, etc. These areas tend to offer:

* Low purchase prices (often sub-$150K)
* Solid rent-to-price ratios
* Property management already in place

Montgomery specifically has both good and not-so-good pockets, so neighborhood-level research is key. If you're looking at Section 8, it's definitely a viable strategy - just know it comes with a learning curve around inspections, paperwork, and tenant selection. Keep an eye on policy changes with the new administration, but long-term, affordable housing will always be in demand.

A Few Lessons I’ve Learned (Sometimes the Hard Way):
* Don’t skip inspections or due diligence, even if the price seems “too good to be true.”
* Budget for CapEx and vacancies
* Neighborhood matters more than the property - a great home in a weak area still won’t perform well.
* Don’t wait for the perfect deal - when the numbers work and your gut agrees, go for it.

Even if you’re not ready to buy yet, start building relationships with:
* Lenders
* Turnkey providers
* Property managers
* Agents in your target markets

Get on deal lists, start analyzing properties, and compare how different markets perform. Stick with it - your $10K/month cash flow goal is totally doable over 10–20 years if you stay consistent, keep learning, and take action when the right opportunity lines up. You’re already way ahead of the game by approaching it with clarity and discipline.

Let me know if you want to ever compare deals side by side or talk more on specific markets - always here to help!

Best of luck,

Melissa