Advice for newbie just getting started

Advice for newbie just getting started

Member since 2021 · 15 posts · 10 votes

I bought a house 18 months ago in Canyon Lake, CA (before getting into real estate). As a contractor myself I began fixing it up. Roughly 8 Months in, my house caught on fire. Bad timing since we were planning a wedding at that time lol. long story short, our brand new house payed for by the insurance company should be done in February and after all this with the help of the rapid increase in property value as well as few crypto investments I have more capital (and equity) than I thought I personally could ever have at this time.

As you all know, "I don't have time and I don't have money" are the two biggest excuses for people trying to get into real estate. The time issue is just a mindset in my opinion; if you want it bad enough, you will make the time. The money problem is more difficult, but it just takes some research and creativity to discover there are solutions. Lucky for me though, I have a little money now! So the big question and reason I'm here... what do I do now!? (sorry for beating around bush)

My short term goal is to replace my income and quit my job ASAP. Very Original... I read volume 1 and am currently reading volume 2 of the multifamily millionaire and I know that my long term goal is to buy commercial real estate and own as many doors as possible. I love the thrill of a risk and possible high reward diving straight into a relatively large out of state apartment complex. However; I am also considering buying a house or two somewhat local and listing them on air bnb. I keep telling myself if it makes money, it makes sense and there is no wrong answer as long as the numbers are sound and I've done sufficient homework. Is this true? Am I headed in the right direction? 

I would love to hear some feedback, advice, experiences or even just some resources (books, articles etc.) that may help me chose a path. Thank you for taking the time to read this novel and thank you even more for any responses. Happy holidays everybody!

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  • Phoenix, AZ · Member since 2021 · 504 posts · 282 votes
    4y

    Congrats on something great coming out of a tragedy. Shane you are correct in that there are a million different ways to tap into REI. Keep your end goals in mind at all times.

    Sounds like if number of doors (and significant cash flow to justify leaving your job) is your goal, that looking into multifamily properties is probably the way to go. Diversifying your exposure through a STR is certainly a move you can make but will take you longer to achieve your # of doors goal. Run the numbers on everything and get really good at it so you can make sound, quick decisions as needed. Start working on an excel model now, and find a good broker/lender so you understand all your financing options. Good luck!

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