Buying Rent-Ready SFH

[Mike Brown]

Hello,

New here, no deals yet. I've chosen to focus my investing in Buy and Hold properties in Southern Missouri where I live and work. I have about 10k saved up so far.  I'm looking at buying rent-ready properties. Looking at the numbers and making some assumptions on the values of the homes and rents (I'll pull my realtor in very soon!), I see it might be very possible to cash flow more than $100 a month and have Cash-on-Cash Returns over 10%.  This seems good to me.  But this leaves the investment making very little money. It would likely take about 10 years to make back the initial investment of down payments, closing costs, holding costs, initial small repairs, etc.). More and more, this just doesn't get me excited.

To try and improve the deal analysis, I'm looking at ensuring the purchase price will give me at least 30% equity while still only putting 20% down. This makes me feel a bit better, but even so, that equity is, of course, tied up in the house for many years.

I think I can save 10k every 6-12 months to repeat this process once or twice a year.

Can you please offer your thoughts on Buy and Hold properties using this strategy? The goal would be to retire early as well as have extra income today. I haven't run the numbers to understand exactly what that means, but I think I need to. On the surface, it doesn't seem to be a strategy that will allow me to retire early.

Thanks and all the best,

Mike