Shoot Down My Beginner Strategy

[Tyler Garza]

Looking to get going on some real estate so I can replace my wife's income and she can quit her job. Please poke holes in this strategy. We currently live in a 1000 sqft single family home that we pay a mortgage on. My plan to get going is to buy a new house and move. I would then form a corporation and get a tenant for our old house. Then as quick as is feasible "sell up" into a multi family with better cash flow and start stacking for the next investment. We have around 100k equity in our current home. 

Does this seem like a good strategy to get going? 

[Nicholas L.]

@Tyler Garza

Hello.  Just to be candid and realistic - we are not in a cash flow environment right now.  You are not going to be able to generate significant income on vanilla, long-term rentals without a significant amount of capital invested.  

Now, there are very high effort / high intensity strategies that can generate more cash flow and/or return capital back to you. If you've got the time for them and the ability to be hands-on, that's great. But they're tough, because there is a ton of competition. For example, BRRRR. Great strategy. Really difficult right now. STR or MTR. Great strategy. Really difficult right now. Everyone wants passive income which has made it harder to come by.

Happy to help more.  Just want to be realistic.