Specialist · Beaverton, OR · Member since 2019 · 13 posts · 1 vote
Hey everyone, I am planning to rent out the house that I am in starting next fall (i know bad time, i try a lease thst ends in the summer and then switch to a year term) our goal is to get enough rental income to partially replace my wife's income in 5 years so she can stay at home when we start having kids. Is there a group of people or even someone else that has created a strategy around this goal or who wants to talk through a strategy focused on that goal?
I'm happy to talk more if anyone wants to! I studied economics, grew up in a constitution/commercial real estate family, and I've studied rental properties for a few years so I have some basic basic skills but I am excited to learn more and begin our journey!
Dude, that's an awesome reason to pursue rental income. If you pull it off, your kids will thank you one day and you won't regret it! My wife has been a stay at home mom for 20 years and we are very grateful she's had the freedom to invest so much of her life in our family. We would do it all over again. We didn't achieve this through rentals but from financial discipline and living a simple lifestyle. Not sure I'm much help when it comes to strategy other than encouraging you to study the concept of "house hacking" (search this phrase on BP). This is where you buy a house or preferably a 2-4 unit property and live in one unit while renting the others out. If you occupy a unit the down payment is much lower (5% as opposed to 25%). If I could turn back time, this is exactly what I would do. It's more challenging once the kids come. House Hacking is a very efficient and safe way to begin or take your next step. Dude, I'm rooting for you to hit your goal.
Dude, that's an awesome reason to pursue rental income. If you pull it off, your kids will thank you one day and you won't regret it! My wife has been a stay at home mom for 20 years and we are very grateful she's had the freedom to invest so much of her life in our family. We would do it all over again. We didn't achieve this through rentals but from financial discipline and living a simple lifestyle. Not sure I'm much help when it comes to strategy other than encouraging you to study the concept of "house hacking" (search this phrase on BP). This is where you buy a house or preferably a 2-4 unit property and live in one unit while renting the others out. If you occupy a unit the down payment is much lower (5% as opposed to 25%). If I could turn back time, this is exactly what I would do. It's more challenging once the kids come. House Hacking is a very efficient and safe way to begin or take your next step. Dude, I'm rooting for you to hit your goal.
Specialist · Beaverton, OR · Member since 2019 · 13 posts · 1 vote
7y
@Brian Gerlach thank you Brian! We are currently living in a single family house and plan to move into our grandfather's old house (it's been in the family for several generations and its a tradition in my wife's family, it's beautiful so I don't mind at all!) This has opened the oppertunity to have a rental and because it was a flip for our own personal use (we could not afford anything else) the numbers seem to work!
I'm getting into the weeds a bit but I really like the dueplex or triplex idea though so I've been looking into that as well but I have no idea what the tax implications of that would be!
If you are going to go the route of income investing sell the house and invest in multi units. If your goal is to create income don't invest in SFHs, move your money to multi units to maximise your cash flow. Use leverage to increase cash flow as well. Do not allow dead equity to sit idle.
Specialist · Beaverton, OR · Member since 2019 · 13 posts · 1 vote
7y
Hey Thomas, thank you for the advice (sorry for not responding quicker). I think that is a way better plan, my wife on the other hand is taking some convincing. Our compromise so far is to use the SFH as a learning experience while looking for a multifamily.
Investor · SE, MI · Member since 2013 · 1k+ posts · 461 votes
7y
Hey John,
If we could do it over again, we would might have tried this strategy, but more than likely would have moved into a multifamily home and rented out the other units and built from there.
We bought our first multifamily house 6 years ago, and we are currently under contract with property #6- they are all 2-4 units. I am able to manage the rentals and stay at home with our kids- it'll get easier in the fall when my youngest will be in school full time. We handle most issues that pop up, and rehab in between tenants ourselves.
I am not opposed to single family rentals, it's just tough to get the numbers we are getting with MF houses currently.
Specialist · Beaverton, OR · Member since 2019 · 13 posts · 1 vote
7y
@Kelly N. Thanks you so much Kelly! I'm glad to hear you are doing it! We are looking for a multi family now (as of 4 days ago) but there is a bit of a supply issue in Beaverton, so we are trying to look at creative ideas like storage or being a partner in a large multifamily. However, our preference is to go the route you have if the oppertunity arises! Thank you!