How did you get started in real estate? In a good year, it is sometimes difficult to choose what to do with extra money - and the usual 0.05-0.10% the banks offer certainly isn't cutting it.
Baby steps. I got my feet wet by taking on a roommate at my first house for the extra cash flow. Once I had saved up enough for a down payment on a 2nd house, I bought it, moved there, and rented out my first place. If things keep going well I plan invest in a 3rd property by the end of this year.
Some factors that helped out:
1. I live in Texas so buying there is a healthy margin between mortgage payments and rent prices. Insurance prices eat into this margin but once you're renting this becomes and above the line deduction on your taxes.
2. I bought my first house when I was 22 and lived there for 5 years.
3. Luck - my first house was flooded by Hurricane Ike in September 2008. Insurance payout worked out to a free remodeling and a kickstart for the down payment on the 2nd house.
4. I found tenants through assisted housing programs. Put in the work to find people who feel your property is a dream house, then they will want to be long-term tenants. The housing program pays via direct deposit on the first of the month so you never have to chase down money.
5. Maintenance - get friendly with some people who work at home depot and local plumbing and electrical services so you can have a handyman to fix the inevitable problems that crop up.
6. I had a friend who was going to transfer to a college near my 2nd house so he's living with me as a roommate. The deal is win-win - he saves money, time, and vehicle expenses while paying the mortgage for me and then some.
If you're interested in real estate, I'd suggest checking out biggerpockets.com
I'm hoping to do something similar to the guy you responded to -- launch a side-business, automate it well enough, and reinvest the proceeds into real estate and other cashflowing assets. I've learned a lot from the forums, blog posts, and podcasts on BiggerPockets.
Some factors that helped out:
1. I live in Texas so buying there is a healthy margin between mortgage payments and rent prices. Insurance prices eat into this margin but once you're renting this becomes and above the line deduction on your taxes.
2. I bought my first house when I was 22 and lived there for 5 years.
3. Luck - my first house was flooded by Hurricane Ike in September 2008. Insurance payout worked out to a free remodeling and a kickstart for the down payment on the 2nd house.
4. I found tenants through assisted housing programs. Put in the work to find people who feel your property is a dream house, then they will want to be long-term tenants. The housing program pays via direct deposit on the first of the month so you never have to chase down money.
5. Maintenance - get friendly with some people who work at home depot and local plumbing and electrical services so you can have a handyman to fix the inevitable problems that crop up.
6. I had a friend who was going to transfer to a college near my 2nd house so he's living with me as a roommate. The deal is win-win - he saves money, time, and vehicle expenses while paying the mortgage for me and then some.
Hope that helps!