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Updated 3 days ago on . Most recent reply

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Briley Roe
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young investor strategy

Briley Roe
Posted

I am a young re investor. 12 months in I have acquired 3 rentals and done 2 flips. I am trying to determine my long term play.

currently doing 2 flips then keeping one property. 

1. flip more and pay off rentals.

2. acquire as many possible properties. (doing this would keep cashflow at 2-400$ per property) If I do this, my plan would be keep more flips, cashout equity when interest rates drop and use cash from other income. (not much as i am a fireman). acquire as many as i can in the next 15 years, then flip for 4 years to build cash and sell some property to pay off the ones that will be worth keeping. essen living on cashflow going forward. 

I'm leaning tow option 2. my think is that the appreciation of the houses will be better in the long run.

I am new to re and would love some input from season investors. I am also looking for a seasoned mentor. I currently live in Abilene tx, 26 yo.

  • Briley Roe
  • Most Popular Reply

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    Jonathan Greene
    #5 Starting Out Contributor
    • Real Estate Consultant
    • Mendham, NJ
    7,634
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    Jonathan Greene
    #5 Starting Out Contributor
    • Real Estate Consultant
    • Mendham, NJ
    Replied

    Neither. You're rushing too much and are likely to make mistakes. Why do you want to pay off your rentals? Do you understand positive leverage? Acquiring as many properties as possible is a fool's errand and a product of door culture. Who cares how many properties you have? Isn't the point cashflow, appreciation, asset protection, tax advantages, and generational wealth? You don't get that from the number of doors. You get it from the quality of the doors.

    Pump the brakes.

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