Tips for getting started part-time

[Account Closed]

Hi all,

I’m considering / planning to get into rental real estate over the next few years, and I’d like to get some wisdom from the community to help me focus my early efforts. Apologies if this kind of post is all too common, I'm using this post as a way to stop reading and start doing! Appreciate you taking the time to read and share your tips!

Some factors at play for my situation:

• - Real estate will be a part time focus - I really like my job and my career, the goal for real estate is to create passive income to supplement my salary, but I’m not trying to quit my job.
  • - My hunch is that I will need to focus on setting up management early, to avoid being overwhelmed by a small number of properties.
  • - Need to find the right team to make fully remote deal finding work.
• - Geographical diversification is important to me - I want to avoid having all-eggs-in-one-market-basket, would appreciate advice on how big I should go in each market to balance this goal against the overhead of having too small a portfolio in each market.
• - We’re planning to move our primary residence over the next couple years as well — are there any concerns with getting a decent rate mortgage for our personal home if we get a bunch of rental property mortgages in the meantime?

Goals and starting capital:

• - Let’s say I set a goal to have $100k-$200k yearly income (after expenses, before tax) within 3-5 years. How reasonable / unreasonable do you think this is for a part time investor?
• - How much starting capital do you think I need to commit to make this achievable? Would $200k,$400k,$600k be enough to make this achievable in this timeline?
  • - Obviously creative financing is always an option, but from what I can tell it seems more time consuming to find deals that work like that.
  • - I imagine I’d be better off starting in a $100k-$200k market to get more units early on?

Appreciate any and all tips for where to focus my efforts at the beginning. I've listened to the podcast a decent amount so I have been exposed to a lot of the basics, but curious what more experienced folks will suggest for where to get started for my specific situation :)