Which real estate strategy works best to escape the 9-5 rat race?

[Rodney Love]

My question for anyone that escape the 9-5 rat race is. What real estate strategy did you use?  Example if you had between $20,000-$70,000 to invest in real estate.  How would you use that to replace your income of  $7,000 a month from your job? Fix and flips, tax liens, mortgage notes,  rentals,  Airbnbs?

[Jon Dawes]

Quote from @Zachary Jensen:

I would look into buying small businesses. Real estate everyone is trying to make a buck in, and it makes the "market" unsophisticated on the buyer and seller side where each is trying to push and unfair deal most of the time. You can buy a business with that money and replace your income fairly easily compared to buying properties. You need much more capital for real estate, as it is a wealth protection and cashflow engine for large sums of money when done right IMO 

Do you mean buy AND RUN a small business, as an owner? That sounds like WAY more work than a W2 job but of course depends on the circumstances.

[Chris Seveney]

Quote from @Chris Battaglia:

@Chris Seveney what do you recommend for learning more on the notes topic? I've seen it discussed lightly on the forums but never looked into it too much.

 we have a podcast that talks specifically about notes. there is also a forum on BP for tax liens and notes with tons of great content.

[Jon Dawes]

Quote from @Travis Biziorek:

I've done this.

I had ~$50k in savings but supplemented it with a $130k HELOC.

Then I started buying SFH's in Detroit for $40k-$55k, putting a little work into them, then refinancing after the seasoning period. That was 2019... prices are higher then.

I ended up building a 12-door rental portfolio in 2.5 years doing this. It was hectic, a lot of work, and had some challenges. But that portfolio now generates ~$16,500/mo in gross rents.

It's also gone up 2.5x in value and I have literally nothing invested in these properties at this point.

THIS is what I'm interested in. I will be messaging you.

[Bob Stevens]

Quote from @Rodney Love:

My question for anyone that escape the 9-5 rat race is. What real estate strategy did you use?  Example if you had between $20,000-$70,000 to invest in real estate.  How would you use that to replace your income of  $7,000 a month from your job? Fix and flips, tax liens, mortgage notes,  rentals,  Airbnbs?

 your not, that IS the simple answer. Replacing 88k per year with 40ksih, not going to happen, Well sure it will take maybe 15 - 20 years, or longer 

[Zachary Jensen]

Quote from @Jon Dawes:

Quote from @Zachary Jensen:

I would look into buying small businesses. Real estate everyone is trying to make a buck in, and it makes the "market" unsophisticated on the buyer and seller side where each is trying to push and unfair deal most of the time. You can buy a business with that money and replace your income fairly easily compared to buying properties. You need much more capital for real estate, as it is a wealth protection and cashflow engine for large sums of money when done right IMO 

Do you mean buy AND RUN a small business, as an owner? That sounds like WAY more work than a W2 job but of course depends on the circumstances.

 Yes buy and run (but have a manager in place ideally) 

[Ace Kaspar]

Quote from @Rodney Love:

My question for anyone that escape the 9-5 rat race is. What real estate strategy did you use?  Example if you had between $20,000-$70,000 to invest in real estate.  How would you use that to replace your income of  $7,000 a month from your job? Fix and flips, tax liens, mortgage notes,  rentals,  Airbnbs?

 Hi Rodney,

It really all comes down to personal preference. I have seen people do flips and continue to do that to escape the "rat race" but others acquire properties doing once a year by putting 5% down and over time it will easily get them living comfortably.

If I had it I would find a property in a solid area for airbnb (where the numbers make sense) and make my place an airbnb while living there or get a roommate for the first year with me then airbnb it out.

Getting a real estate license helps as well so you can get $$$ for referring people or put $$$ towards the down payment or closing cost from what you would make as the realtor on the deal.

[Michael Smythe]

@Rodney Love what is your timeline?

Wholesaling and flipping are just self-employed JOBS. 
You do get more freedom, but also more RESPONSIBILITIES!

Landlording: LTR, MTR & STR can also be a JOB, unless you delegate or hire a PMC. You will always need to, "manage the manager" though to avoid innocent mistakes & fraud.

Tax Liens are a JOB, you always have to be looking for your next one.

Notes can be passive income if set up correctly.

You can also do Syndications and REITS, both of which are passive.

Nome of these are going to turn $70k into $7k of consistent income/month.

[Devin Scott]

You also need to keep in mind that anyone saying it took them 10 years, did it during the best 10 years maybe ever to invest in RE.  Prices relatively affordable, rents rising, and rates close to zero.  It's GOING to be harder in the next 10 years.  

[Henry Li]

I would recommend you to buy a rental property put down 3.5% down with  fha loan. You live in one unit/one room and rent the rest of the units/rooms to airbnb stort term tenant or medium-term tenant or long term tenant.In this way you will get rent from the tenants and you can pay the mortgage with that monthly or biweekly.You can live in the property for almost free and the tenants pay you rent and cover decent amount of mortgage.You can rent you house while you living in this investment property if you are single but if you have family members,don't rent it.You can consider to buy the investment property with other types of loans like conventional loans etc,as long as you put down little down payment and low interest rate.you need to occupy one of the units in the property as your primary residence if you use fha loan.The property will appreciate over 5 years,10 years,20 years and so on. If there is free land,space in the backyard or side yard,consider to add a adu and rent it as well,and the adu also gonna appreciate overtime.Remember to find great deal,great location and buy at great time.I hope you will get benefits from my little help，good luck my friend!

[Nate Marshall]

Quote from @Rodney Love:

My question for anyone that escape the 9-5 rat race is. What real estate strategy did you use?  Example if you had between $20,000-$70,000 to invest in real estate.  How would you use that to replace your income of  $7,000 a month from your job? Fix and flips, tax liens, mortgage notes,  rentals,  Airbnbs?

If I had $20,000 to 70,000 to invest I would lend it as EMD and eventually place some capital into GAP.

Lend to wholesalers and those looking (and willing to pay) for EMD funds. Lend at 100% (gators are trying to get 200-250% or more). Break it up into 4 weekly cycles. Meaning break 20K into 4 tranches of 4K. After 2 cycles pull your startup capital back then start your gap program with that.

You will exponentially increase your dry powder. You can then take the time to study all of the asset classes. niches. entry and exit strategies and build relationships with lenders etc. 

[Wale Lawal]

Quote from @Rodney Love:

Quote from @Wale Lawal:

@Rodney Love

Real estate investing is a common means of escaping the 9–5 grind, although the methods used to do this vary greatly depending on the investor's background, abilities, risk tolerance, and the health of the market in the desired investment region. Careful planning and strategy selection are crucial when starting with an investment of $20,000 to $70,000 and trying to replace a $7,000 monthly salary. What each of the aforementioned strategies may accomplish in order to reach this aim is briefly summarized here:

Fix and Flips: Your initial capital could serve as a down payment and renovation fund for a single property to start. Success in this area requires a keen eye for undervalued properties and a solid understanding of renovation costs and ARV (After Repair Value).

Tax Liens: With limited capital, investing in tax liens can be a way to start small. However, turning tax lien investments into a steady income stream is less direct than other strategies and might not quickly replace a $7,000 monthly income.

Mortgage Notes: Investing in mortgage notes can provide a steady income stream if you acquire notes at a discount. However, building up to a $7,000 monthly income would likely require a significant portfolio of notes, more than the initial capital might allow for starting.

Rentals: With $20,000-$70,000, you could potentially use leverage to acquire one or two properties in markets where this capital suffices for down payments. Selecting the right location and property type is crucial to maximizing rental income and minimizing vacancies.

Airbnbs: Your initial capital could cover the down payment on a property in a location with high Airbnb demand. Success requires excellent hospitality and marketing skills to maintain high occupancy and nightly rates.

Achieving a monthly income of $7,000 requires a mix of strategic investment, reinvestment of earnings, and perhaps most critically, time. It's also beneficial to continually educate yourself on real estate investment strategies, market trends, and financial management to adapt your strategy as you grow your portfolio. Networking with experienced investors and leveraging professional advice can also significantly impact your success.

Good luck!

Mr . Wale how are you? We talked before let's connect again

 Yes sir @Rodney Love You have my contact information. Reach out and I will get you back on track.

[V.G Jason]

Quote from @Devin Scott:

You also need to keep in mind that anyone saying it took them 10 years, did it during the best 10 years maybe ever to invest in RE.  Prices relatively affordable, rents rising, and rates close to zero.  It's GOING to be harder in the next 10 years.  

100% this. And people really need to realize what happened for them to have a successful REI venture isn't what's GOING TO happen. You need to get in front of where things are going in your view; your view may be wrong, so take that into account too.

My view on REI and a little in macro-- primo lands will be more primo, investor pools will run to chase dollars which in turn makes non-investment grade areas a better return on equity, managing and owning debt may be a better return than equity, international equity exposure may be superior to domestic, liquidity and cash reserves will remain highly valuable and the notion of all cash needs to be invested will no longer be pushed as hard. It's very crucial to be liquid, conservative, less leveraged and kind of bank on hard assets with debt exposure as opposed to equity exposure, full leverage, and low liquidity of the pre-Rona era. I won't get into Bitcoin on here, but that's just my view. And before someone tells  me how I am addressing this instead of the admiring the problem-- I buy hard assets, buy debt, keep healthy reserves, will buy 10 better locational houses than 15 okay locational houses.