Am I taking the easy way out?

Question

First time investors,

So over the past 6-8 months I have dedicated myself to trying to become a knowledgeable investor.  Reading books, listening to podcasts, talking to other RE investors, etc.  And of course, one of the things I learned is that you never learn it all and that a certain quote really hit home, "The best time to invest was 6 months ago, the second-best time to invest is now".  So, with that being said I decided to invest my time in an area of RE investing that I seem to be attracted to and that was MF.  I researched markets, found great sites to do analysis and comparisons on etc.

My issue came down to the fact that I currently have a full time W2, that I actually love and enjoy and the purpose to my RE adventure was to start securing additional income for my wife and hopefully family one day as well as supplement my income. Even though I get paid very well (not to brag) but to show that this income isn't needed to the point where we would rely on it to live. I unfortunately work long hours, sometimes 6-7 days a week and was noticing I wasn't table to dedicate the time and hours needed to really do this properly, because I don't want to half *** it.

I started to then look into companies like Rent to Retirment and Roofstock. I guess I'm ultimately on here to get some advice and opinion on if I'm taking the easy way out and not truly investing from start to finish on my own. I know everyone has their own opinions on what's best for them and what some people think of sites such as those vs doing everything yourself. The work doesn't scare me, it's the time that I feel like that I need to do that will work against me.

No better site filled with experienced and new investors like this one, so I'd love to hear what others think. Am I taking the easy way out by going through a site or should I still try to dedicate myself and do my own research, find my own properties and invest head on.

Thanks for everyone's opinions!

Marc S.

NYC

Nathan Gesner · Answer

Stop over-thinking.

How did people invest 20 years ago or 75 years ago, before all the books, YouTube gurus, BiggerPockets, cashflow calculators, etc?

The saved up money. They bought a nice house in a nice neighborhood that rented for more than the monthly mortgage payment. They learned how to maintain the home, manage Tenants, saved up any extra for emergencies, and held on for the long haul. 30 years later, the property was paid for, they earned tens of thousands in cash flow, and they had hundreds of thousands in equity.

It's that simple. Buy a property that you can rent for more than the monthly expenses. Save any leftover income each month to build a reserve so you never have to invest your own money into that property again. Rinse and repeat. Buy one house a year and in less than 30 years you will have really enough cashflow to live off of and a net worth that puts you in the top 1% of all Americans.

Marc S. · Answer

You've basically given me my medication for analysis paralysis! lol

Max Ferguson · Answer

You're overthinking this and I assume have analysis paralysis. You can do Real Estate any way you like. The best part about having a high income, is that you can outsource every bit of the experience. Your value comes in the purchase and hold. Things like management and repairs can be paid for which means less work for you. Also, you don't know what you don't know until you actually pull the trigger. Find a good deal somewhere and go for it. Not everything has to be a homerun, but instead a base hit to propel you forward. I promise once you are a year in you will feel a lot better.  Dedicate 1 hour every week or two to service whatever need be for the property, but otherwise sit back and let the property manager handle it. Good luck and let us know what you decide.

Henry T. · Answer

I've read some of the landlord/tenant laws of NY (a 75 pager I think it was) and it's as frightening as Seattle. I would not invest in NY. Too risky to be a landlord. If you follow thru, make sure you have a lease written by someone with years in the trenches, not a basic starter lease from a landlord association. And have a real pro vet your tenants. Is rent control an issue? Otherwise, find another state, or you could be in a heap of hurt. 40 years experience in Seattle, it changed from fairness to a no-go zone. I love real estate, but we are in different times, so just a heads up. Good luck.

Ke Nan Wang · Answer

MF is really for advanced investors and it has a steep learning curve.

If you just wanna park your W2 money somewhere for the purpose that one day you can retire from, I’d say find a 400k turn-key SFH in a suburb where it can be rented out for high 2k or 3k a month and just start there. Assuming if you just break even on cashflow, there are tons of other benefits for you where 30 years later you paid off the property and just eat the rent for almost pure cashflow. I’m sure within 5 years you will have other ideas for this property. This type of property tends to attract nice tenants so let you ease into a self manage property management role.

Start with this and tell us what you think next year.

Am I taking the easy way out?

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