What should I do

[Alberto Urena]

I'm looking for an advise, I bought a duplex 2 years ago with first time home buyer so I wanna keep on buying but I wanna know what's best so this is what I'm looking for i wanna build a porfolio have enough income from real estate that in 10 years from now I can quit my job but focus on my investment property and being able to still eventing, right now I have about 100.000 dollars what should I buy next, in my market duplex 3 bed 1.5 bad each unit are going for 300,000 to 350,000 with no garage so you have an idea.

[Trevor Ewen]

@Alberto Urena

I think it may be best to clarify on goals a little bit. If quitting your job is the goal (i.e. can't stand it, I want to work in real estate), then there are faster paths than income properties.

Replicating your W2 income with rental income takes a long time. Take for instance, a fairly normal person who has a standard of living around $6000/month (before taxes). Say units in Anchorage make 1% (which is a bit generous for Anchorage):

Your monthly payment on a 30 year (4%) will be: $1,146. No taxes in Alaska.

3000 - 1146 - 100/mo for insurance (just a guess) = 1754.

Split that in half for 50% rule, in regards to capital expenditures: 1754 / 2 = 877

6000 / 877 = 6.7 = 7 Units

So you will need 7 homes of about that size (doable, but takes time). In the process you will also accrue $1,680,000 of debt in the process, which is high for most people. 

Getting into flipping or wholesaling lets you work in the real estate business sooner rather than later. Investing for income is very slow growth. Don't get me wrong, I am an investor for income, I just have no interest in quitting my job.

*Anchorage is a cool spot. My brother is a Lieutenant in the army at Ft. Richardson. I want to get involved in real estate, but doesn't seem to catch his interest all that much.