$40k a year to invest, best strategy to make the most of it?

[Jason Tracy]

Just used an FHA loan to buy my first house, moved in and am renting a room out already. I have $40k from this year saved and can continue saving the same each year pretty easily. However, I don't want to keep working forever, so what's the best strategy to grow $40k a year?

A house a year with a conventional loan works with housing in my area, but if not rented then I would be eating into that $40k. What do you all think I should do or is that a good strategy, “would/could it work”

[Taylor L.]

What you described (vacancy) is quite normal. Naturally, we must minimize our vacancy and maximize collections in real estate, but vacancy is just a part of the game sometimes. It should be included in your cash flow calculations and return projections.

$40k a year to invest consistently is certainly enough to snowball you into financial independence down the road (depending on what your FIRE number is). The 'best' strategy is the one that you will implement consistently over time. I like multifamily because we have far more tenants and thus more streams of income.

There are many ways to make money in real estate. The strategy that you can commit to is the right one for you, as long as you are picking a proven strategy and investing for cash flow.