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Updated almost 10 years ago,
Can I 1031 my way into a Large Multi-Family?!
Hello Everyone! This is my very first post on BiggerPockets and I have to say BP is AMAZING. From the website layout and ease-of-use, to the many different avenues that constantly provide great information like the BP Podcast. BiggerPockets has literally changed my life!
So on to the topic at hand. I've been thinking hard on what I want to have as the foundation of my REI portfolio and I've realized ever since I picked up my first REI book I wanted to genereate Cash Flow, Lots of it. I also know, a great vehicle for creating cashflow is an apartment building(s). Now I haven't done any REI as I am still in the stage of soaking up as much knowledge as I can. I am 20 years old and I'm realizing my biggest problem is capital, like How can I get enough capital to even begin working on that level. Even something like a 12 or 24 unit complex?
My Idea would be I start small, buy a property and rent for a couple years then 1031 into another larger property and repeat. Repeat until I have made my way high enough to be able to 1031 into an Apartment complex that produces tremendous cashflow. Then go and do the same process until I can get into another large Complex.
Now basically what im looking for is feedback on my idea, like if thats even possible? Are there better plans to aquiring such size buildings like private investing? Are apartment complexes even the best vehicles for buidling that cashflow or should I go the route of eventually owning 26 houses free and clear like the success example Donis King from the book The Millionaire Real Estate Investor? I've read many books and listened to just about every podcast on BPpodcast but I know the forums can provide a TREMENDOUS amount of knowledge and enlightenment!
Thank you guys in advance for taking the time to read my post! Hope you guys can teach me something!