SUCCESS! Now what?

Question

Using Bigger Pockets as an educational resource, I successfully bought a fairly inexpensive 3BR SFH in Lansing, Mi, got tenants in there about a week ago, and now I'm feeling pretty good about things. Assuming no huge issues arise (I know they can), I should make a decent ROI.

So, my question is - what next?

The first thing I'm going to do is go back and review all of the steps I took to get here because I've already forgotten a lot. I also want to set up a good bookkeeping for my property. More importantly, however, I'm not certain what my strategy should be. I'd like to get move involved in real estate/buy more properties. I guess I'm asking two questions here:

1. What career/training or experience should I seek out to further my knowledge?

I'm willing to leave my current job to learn more. I only make 40k and I feel like I really need to ramp up my pay to start funneling more money into real estate. I'm also open to hear how someone mightstrategize on my budget.

2. What's the next kind of real estate I should buy?

Maybe just another house similar to the one I have? Or, I could take advantage of an FHA loan and move out of my apartment and rent to roommates (I live in Chicago, IL)? It might be a great way to learn about renovations if I can roll them into my mortgage.

Anyway, I'm interested to hear what people have to say. Thanks for any advice you can provide!

Joseph

Account Closed · Answer

If you go to Google Maps. before you can get directions they require 2 necessary pieces of information Starting Point and Ending Point/Destination. You have to have those prior to getting the accurate directions. Then you can choose the type of route, the shortest distance, quickest, most scenic? You can select to avoid interstates or tolls, etc. Before anyone gives you a "direction" if they don't take into account your situation, skills and desires.. then it isn't a path for YOU, but just a path.

Wendell De Guzman · Answer

It depends on your interests, skills and existing resources. You don't need a long term plan necessarily. Have a bias towards ACTION. By moving forward and acting, you will learn more about what it is you really like and what it is you want to be good at. You don't have to know all 30 steps before you act. You have to taken step 1, so just figure out what steps 2 and 3 are and do them. Me personally, I experienced practically ALL the real estate strategies available for residential real estate. In 10 years...I wholesaled a LOT of deals, I did buy-fix-resell (retail) deals, subject to that I leased optioned, SFRs that I rented, I owned and resold land, I owned a 36-unit apartment building in a war zone, and I am part owner now of a 133-unit apartment complex in a nice area. After experiencing all these real estate strategies, I realized... 1. I love the deal making aspect of real estate 2. I hate landlording and the hassles of dealing with tenants directly 3. I am not very handy or good with the details of a rehab project 4. I am good at raising capital and so... I decided I will focus on 2 things: wholesaling houses and buying-and-keeping 100+ unit apartment complexes in nice areas. Wholesaling and getting a BIG apartment complex allow me to use my skills in deal-making while getting a BIG apartment complexes allow me to use my skill in raising capital. An apartment complex big enough allows me to just hire the right people to deal with tenants so I don't have to deal with them.

Joseph Montes · Answer

OK. I can see you are all big-picture thinkers. @JScott I did not develop a long-term plan. There was so much to absorb at first and I just wanted to try and see if I'd enjoy it before I came up with such a plan. I do. That's why I'm here now. Here's my goal: I'd like to get away from my desk job and make more money working for myself than I do now. Right now, I obviously don't have the income or the skills to make such a transition so I'm willing to pick up a different profession to gain some of those skills to move that way. @Fred Ramos, maybe I would be happy sitting on 10 homes with passive income. That's just the issue. There as so many areas of real estate to dig into I'm not sure where to move next. I think in absorbing all the information this site provides, It's difficult know where to narrow my focus. Maybe, you all could share some practical first steps you took when you entered this industry? What were the first things you focused on learning? Thanks.

George Foster · Answer

I am glad that you took the first step towards learning about real estate but like the others have said, you need a goal then develop a plan to reach those goals.

Fred Ramos · Answer

What's next is exactly what you are looking for in life.. I can tell you to go buy 10 SFH's and live off of the cash flow for the rest of your life.. But, will that make you happy?? What do you want? do you want passive income, do you want to buy/flip? do you want to retire rich 5 years down the road? You are going to hear plenty of opinions of what you whould do next.. You first have to know what you want.. Simple..

J Scott · Answer

Did you have a longer-term plan in place when you purchased this property? If so, what's the next step to reach the next goal in your plan? If not, now is probably a good time to put that plan together -- I'd start with figuring out your long-term goals...