Thinking About Investing
Dated: April 19 2019
Do you ever wonder what it would be like to truly be living off of your rental income properties? I do! I am in my mid thirties now my goal is to own rental properties to pay for the lifestyle that I want my family to experience. The question is, HOW? How do you do it in a market like this? How do you pick the best investment? How do you acquire the cash needed for your first investment? As I talk to those who were just starting out, many years ago, I found out that most first time investors took on properties that they could afford to live it as a first project. Start small, and do the projects yourself. Sweat equity can go a long way in any market!
Ever hear people talking about the 1% rule? An easy way to know your making a smart investment is to use the rule; If the rents are bringing in 750 month... you don't want to pay more than 75k for that particular property. If rents can bring 1500 a month... then you want to make sure that you are keeping the purchase price under $150,000. Easy math right?
One thing to consider is leveraging your money with a mortgage. Every mortgage comes with extra costs involved, but allowing someone else's money to work for you to make a profit can help you either spend a little more on your property, which could be better in a rising market for pocket neighborhoods that are desirable. Leveraging could also allow you a larger return on your initial investment. In a rising market... holding a property 3 years should make it worth the cost of your initial investment. In a slower market holding a couple more years could be beneficial.
There are many more experts in the field of investing in real estate. If your interested in investing on a small or large scale, I have a few mentors that I would suggest you read material from. Of course "Rich Dad Poor Dad" is a classic for a mindset shift. Author: Robert T. Kiyosaki. Here's the link for you to real online! http://www.lequydonhanoi.edu.vn/upload_images/S%C3%A1ch%20ngo%E1%BA%A1i%20ng%E1%BB%AF/Rich%20Dad%20Poor%20Dad.pdf