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Updated about 8 hours ago, 12/02/2024
Trying to set up to do real estate in the future, what should i focus on?
I'll start by explaining my situation.
I am 27 and two years ago i was making 700 take home a month, last year I got a new job and started making 900 biweekly take home. Then i decided to move to semi truck driving and now i'm making 1k a week take home. Next year i'll hit top pay and should start bringing in 1.2-1.3k a week. and the year after that i plan to move to linehaul and make about 2k a week.
I do have a lot of debt, or at least it feels like it to me. the breakdown being;
23k in college debt i got getting a bachelors that i never used across 5 loans ranging from 3 to 5% interest rate
5k in bank loan debt i got getting my trucker cdl a at 12% interest rate.
2.5k in credit card debt from not having an emergency fund and then having emergencies. Interest is 18%.
for a total of 30.5k in debt.
current financial status:
1k emergency fund.
1k in reserves outside of that.
6 month plan:
I'm going to japan in march with my sister so i'm currently reserving my money to do cool things in japan as it was my personal incentive to get my *** into gear and get my life together.
after that trip i'm planning to tackle my debt in order of highest interest rate to lowest interest rate.
I believe i can comfortable put 2500 a month into my finances. so i expect to be able to be debt free roughly a year from march.
After that: im planning on parking my money into the smp 500 to help it grow until i have enough money for a downpayment on a duplex to a quadplex and doing the houshacking strategy yall talk about. Leaning towards short term rentals to start then transitioning to long term for less stress over time.
My goal is to have 'passive' income equal to double the national median salary.
now my questions for yall.
1. does all of the above make sense? what would you suggest changing?
2. I don't know much about real estate law or the inner workings of the business, such as underwriting deals or identfying good deals and locals to invest in. Also on running businesses and how to value add properties. I've watched some videos from BP but i'd like some recommended reading to educate myself in preparation and so i can start going to open houses and actually having an idea of what i'm looking at.
3. i'm thinking about changing careers to either electrician or plumbing to get skills that may help me manage my properties or do house flips and value adds to my properties. Also hoping it would help me evaluate properties better or gage compentency of construction crews i work with. Both careers would see a sharp short term income loss, but once i'm established the money i'll make ought to be comprable to my next year income. Alternatively i could go for being a real estate broker and try to get experience in actual real estate without putting too much of my own skin in the game. Thoughts?
I know its a lot, but any feedback would be appreciated.