My goal has been to buy a new primary residence every two years in order to own five properties that are all cash flowing $1000/month within ten years. That will allow me to have a passive income stream of $5,000/m and I could have the opportunity to retire in ten years. My strategy requires moving every two years. I do this in order to purchase the property as a “primary residence” so I can put less than 20% down. This makes it easier to save enough money in two years to afford the next down payment. You don’t have to be a real estate agent to execute a similar strategy for yourself.
I’m now on my second home and just concluded my first year of being a landlord. It was a learning experience and I hope my tips above help you create a real estate portfolio that gives them passive income so they can enjoy life, instead of working until they die.
I can help you build your real estate portfolio. Considering keeping your existing home as a rental instead of selling it? I can help you through the process of renting it at no additional cost if you use me to help purchase your new home. Typically I charge one month’s rent for this service.
What I learned my first year as a landlord:
3. Make it clear that weeds exist and when they grow above one foot the tenant is responsible to pull them.
4. Don’t allow renters to put holes in the walls to hang up things. You will have to paint and patch every year. Also, paint all the rooms the same color.
5. I prefer managing myself than having a property management company. A brand new shower enclosure shattered on my renter. She was fine, it was tempered glass. I was able to figure it out pretty quickly and the glass was still under warranty. I imagine if I had a property management company the phone tag required and it makes me dizzy. There is no doubt when issues arise that the property management company is going to call you, so why wouldn’t you just save the money and deal with the call directly from the tenant.