Able to save several thousands a month should I start now or wait

[Dany Pelletier]

Hi,

I'd like to get some insight from experienced people here on what you would do in my situation. I am focused on rental properties.

Right now, I am on an intensive "saving" period.

I'm 26 and I recently moved into an apartment with my brother. We picked a really cheap apartment which costs us each $250 / month to live in. I am frugal on my expenses and I own no car.

I am a web developer and I am able to save $5000 per month (after all expenses including taxes).

About my location, I live in Quebec, Canada, where the cost of living is not really expensive but I don't know which U.S city I can compare with for the housing market - let's say for $200,000 a decent family house (3 bedrooms, 2 bathrooms, modern etc.) can be bought. Decent quadruplexes for ~$500,000. I might be off in my numbers but that might not play a big factor in your answers.

I'm trying to come up with a game plan and right now I have these 2 questions where your insight would probably come into play:

1. Should I start buying rental properties ASAP, IE save for ~6 months and buy something like a single-family home or duplex.
2. Should I save for a longer period, and start "bigger" with a multiplex IE quadruplex. (and go on from there, keeping my job and trying to buy a new quadruplex as soon as I can again, then bigger apartments units whenever I can afford it etc.)

If I go with 1., I am thinking that the burden of dealing with new properties could be a disadvantage because it *could* interfere with my daily job which brings a cash flow much bigger than these "small" properties. However, the good side would be that even if it's a burden, I would most likely be able to still save 5K a month, so it would be a good bonus to have while giving me experience about real-estate.

If I go with 2, I don't gain experience but I can save in peace, read a lot, and possibly earn more than 5K a month by working over-time.

Any kind of insights will be appreciated I really want to gain as much knowledge as much as possible.

[Steve Bracero]

Welcome @Dany Pelletier

1. I am looking to house hack with a duplex or tri plex. Figure out how you want to finace the deal. If you live in the unit you can do a FHA loan which is 3.5% down and you live in the residence for one year-