New rental investor strategies

[Mikhail Katz]

Hey guys, I am very new here this is my first post.

I want to invest in rental properties and my first goal is to achieve around 5k passive income from rentals.

Right now I have a good income and maintaining low cost of living, so while things are this way I want to invest aggressively. I am able to invest let’s say about 25k every 6 months.

So my current thinking is to buy 80-100k houses in Midwest with 800-1200 rent a months. Put down 20% and finance the rest and keep doing it for the next few years. In about 5 years or less I acquire 10 houses and start to pay them off one by one and when I am done I am at my goal.

I know I am new and maybe my plan has flaws but I might be able to correct my course as I move forward. I am not looking for easy or quick money just want to build financial independence for my future. I might not make that much money in future or may start a family and have much less funds to invest so you get my point.

Also, right now I don’t know how to target my future purchases for now I am planning to use Roofstock but also would be glad to meet real estate agents who I can work with.

[Subbie Kaur]

@Mikhail Katz

Welcome to Biggerpockets Mike! 

Have you looked into any specific markets or states?? 

Here are three major things I look for when picking an out of state to invest in. 

1. Know your strategy.... High Cash flow or more appreciation? This will make it easier for you to research just for Markets that focus on your personal strategy.

2. As an OOS investor, you want to invest in markets that have low property taxes, landlord-friendly laws, and a growing economy(more rental demand).

3. Find a few good property management teams in the markets, get in touch with them and get a feel of what they have to say about the market itself. This will allow you to get a better understanding of the market from different sources. 

Good luck!