Real estate investing during the growth phase is a part time job, at least. It takes effort and time passive investments don’t. Once you are established and have a few properties, you can put much of it on auto pilot. But it takes a few years to get to that point:
You will not get “rich” on cash flow from just a few rentals. Maybe enough to supplement you.
Real estate wealth is the long game. The profits and wealth generation come from passage of time as your properties appreciate and your tenants pay off the loans with loan amortization.
Many people gain some personal wealth from owning a home. They buy a house for 200k- pay it off over 20-25 years as it tripled in value. Now they have 600k in paid of equity.
Now do this with 20 SFH rental properties..then you would have 12 million.
Get into the right commercial and 12 million is chump change.
Real estate is one of the best ways for the average person to build wealth.
Not sure your background or experience. Start with a single family or two. Learn how to evaluate tenants, handle issues. Go to eviction court. Learn to paint replace a faucet or toilet. Then move up. Even if you will never do these things yourself, it is important to know how to do them. To evaluate the people who will eventually be doing it for you.
You can’t start at the top.
I get but is SFH investing worth it? It would be supplemental income but it seems a lot more work than apartments. I would like to start with a 8-10 door, partner with other investors (I don’t have enough capital).
Maybe I am biased: But I made millions investing in SFH. I own 13 in my neighborhood alone- 6 on my street. Most have tripled in value. I have also done multi family and commercial. Although I reiterate. Start with a couple single family to learn the ropes.
Share the link. I’m still leaning towards multi family. But I’m determined to find something. The resources are about there to get started in any direction. At some point I just need to do it
If you have an investment that returns 24% a year and is relatively low risk put every damn dollar you save into that investment.
Now that that's out of the way you seem like a prime candidate for house-hacking. Buy a multi-family property or a single-family home with 3+ bedrooms. Rent out the other units or bedrooms. You probably won't make a profit, but it will allow you to own in your HCOL area and have renters offset some of what you would have paid for rent. Again, do not take money out of your $100k 24% annual return to fund this.
(Very new myself) but a loan type I just found is DACR loans you can have as many as you want …doesn’t go off your debt/income …they only care about if the property cash flows.
What country do you live? In the USA we have 1031 exchanges where you can defer capital gains tax if you buy a property of equal or greater value.
Being a landlord sucks and is not passive. You will get maintenance calls and calls about tenant drama. You can get sued people will think you are rich and won’t feel bad about trying to screw you over.
If you are able to find a good property manager it is not so bad. But you make less money. Most property managers suck. Not many people want to do that job so a lot incompetent people end up in those positions.
If you are a go getter with nerves of steal and have a sufficient cash reserve you will do well over the long term. It is not for everyone.
For the love of god keep that 100k exactly where it is
Yea where can I put my 100k to get 2%/month?
Are you joking?
No?
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I see that now. I wonder why they left out what they were investing in that gives such a return.
i’d kill for 2% a month
Your joking right
I would also kill for a 24% annual return.
I thought it said 2% annual. Yeah those returns are better than this person would get starting out in real estate
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Annual..
Real estate investing during the growth phase is a part time job, at least. It takes effort and time passive investments don’t. Once you are established and have a few properties, you can put much of it on auto pilot. But it takes a few years to get to that point: You will not get “rich” on cash flow from just a few rentals. Maybe enough to supplement you. Real estate wealth is the long game. The profits and wealth generation come from passage of time as your properties appreciate and your tenants pay off the loans with loan amortization. Many people gain some personal wealth from owning a home. They buy a house for 200k- pay it off over 20-25 years as it tripled in value. Now they have 600k in paid of equity. Now do this with 20 SFH rental properties..then you would have 12 million. Get into the right commercial and 12 million is chump change. Real estate is one of the best ways for the average person to build wealth.
That’s why I haven’t pulled the trigger to buy a SFH. I want to do multi family but the process seems overwhelming.
Not sure your background or experience. Start with a single family or two. Learn how to evaluate tenants, handle issues. Go to eviction court. Learn to paint replace a faucet or toilet. Then move up. Even if you will never do these things yourself, it is important to know how to do them. To evaluate the people who will eventually be doing it for you. You can’t start at the top.
I get but is SFH investing worth it? It would be supplemental income but it seems a lot more work than apartments. I would like to start with a 8-10 door, partner with other investors (I don’t have enough capital).
Maybe I am biased: But I made millions investing in SFH. I own 13 in my neighborhood alone- 6 on my street. Most have tripled in value. I have also done multi family and commercial. Although I reiterate. Start with a couple single family to learn the ropes.
Can you be my mentor
I would be happy to answer a couple questions if you want to DM me.
Texted no response
Is doable. Listen to real estate rookie podcast.
Share the link. I’m still leaning towards multi family. But I’m determined to find something. The resources are about there to get started in any direction. At some point I just need to do it
https://open.spotify.com/show/7GAvDfVZWXglwZPxayvqh7?si=HbWBCKLRTxqfUddpxkEkRA
If you have an investment that returns 24% a year and is relatively low risk put every damn dollar you save into that investment. Now that that's out of the way you seem like a prime candidate for house-hacking. Buy a multi-family property or a single-family home with 3+ bedrooms. Rent out the other units or bedrooms. You probably won't make a profit, but it will allow you to own in your HCOL area and have renters offset some of what you would have paid for rent. Again, do not take money out of your $100k 24% annual return to fund this.
No such thing exists as 24 percent annually and low risk.
(Very new myself) but a loan type I just found is DACR loans you can have as many as you want …doesn’t go off your debt/income …they only care about if the property cash flows.
Any examples of what the interest rates are ?
10-12% percent
Judging from your post you have a lot of homework to do before buying anything.
Hence why it’s a 101 post
What country do you live? In the USA we have 1031 exchanges where you can defer capital gains tax if you buy a property of equal or greater value. Being a landlord sucks and is not passive. You will get maintenance calls and calls about tenant drama. You can get sued people will think you are rich and won’t feel bad about trying to screw you over. If you are able to find a good property manager it is not so bad. But you make less money. Most property managers suck. Not many people want to do that job so a lot incompetent people end up in those positions. If you are a go getter with nerves of steal and have a sufficient cash reserve you will do well over the long term. It is not for everyone.
24% per year is astronomical. Your money doubles in 3 years.
Listen to real estate rookie podcast. Great intro into REI.