What would you do in my situation?

Question

Was wondering what you guys would do in my shoes.

Background

Next year will be working in the Middle East where I will be able to save 50-70K a year. Each contract being for 2 years. Will have 2 months off a year to travel to the US ect. Will be 28, single, no kids, no house, or debt.

Goal

To generate sufficient cashflow to where I no longer have to work a 9-5.

Ok given this info what would you do specifically / what would be your plan and time table? Looking for specific and realistic ideas here.

Thanks guys. All replies and opinions will be much appreciated.

Harry M. · Answer

Lee Melvin - that's a great opportunity. Obviously, the big challenge is limited time stateside. I'd spend the time before you leave talking to property managers and real estate agents and getting relationships started. You're going to need people you trust on the ground here. One of the tricky things is going to be squeezing your purchases into the two months each year you have back home. If you have an accepted offer at the start of the two months you are probably ok for a normal purchase, but if you are just starting to look at that point, the two months may not be enough.

Regarding types of properties - personally, I'd try to go for slightly more expensive quads or duplexes, basically look for the highest "sweet spot" of income/price I am comfortable with. The reason being that this conserves your Fannie Mae bullets. In my eyes, a duplex for 150000 that rents for 950 per side is a better deal than a SFH for 75000 that rents for 950 total, all other things being equal - for the simple reason that you use up only one of the cheap conventional loans.

Callum K. · Answer

In the words of Dave Ramsey, Save, Save, Save.

Once you have saved that first year, I think it would then depend on what you can do given your available time and location.  If I were you, based on your given information I would save the money and build it while also researching what I want to do.  Your goal was similar to mine so I started buying newer $150k+ homes and renting them out.  fantastic passive income, however work is still required to maintain this income (albeit less headaches than warzone rentals).  While you are in the process of saving, spend the time to talk to people, read forum threads on here and find out which niche you want to focus.  Believe me there are lots of different styles in real estate.

We recently sold our business and received a lot more money than expected.  One thing I have found is that the more cash you have to put to work, the easier it is to do what you want to do.  Sounds like you have a good job that will allow you to exploit the savings so I would exploit that as much as possible.

Good luck

Lee Melvin · Answer

Seems like I can get pretty good CF from buying homes around 30-60k that rent for 700-900 bucks. Im leaning towards buying 2-3 of them then saving up for a 4plex. Finding those deals are prob easier said than done though....

George P. · Answer

i am with troy. family and friends can wait for you to get back to them. the deals are drying up quickly and they wont wait.

and i am not even talking about "partying". that does not create "lasting memories".

Ryan Halverson · Answer

Personally Lee Melvin with enough resources but not extensive knowledge like myself, given your circumstance I would invest in a 150k 4plex with good returns.  By going smaller you can afford mistakes more than with a larger building.

Get a list of plumbers, electricians, carpenters in the area then hire a property manager.  Let the PM run the property and learn as much about the process as you can in 2 years then when you get back you can liquidate and use the 150-200k as a down payment into a larger complex with more passive income.  This is what I would do, but I am a big risk taker :)

Lee Melvin · Answer

Wont find out / get a job until my job fair next Feb. I got a lot of time but I am a plan freak and like to start thinking early about my options.

I got a few ideas but im looking to see what other guys would specifically do in my situation.

Troy Fisher · Answer

Make Time.  Its amazing that you put physical health in front of everything else, and then went with family, and then partying.  Find a doctor in Dubai, Skype weekly with your family.  Spend your four weeks vacation investing.  If you don't force it the top of your priorities, it will always be a 'someday'

Chris Solis · Answer

I'm in the same boat Lee. I have about 150k in savings.

I'm looking at everything from Multi Family units to SFH.

My problem is time. I have about 4 weeks total vacation time per year.  By the time I take care doc appts, seeing family, partying, etc, I have zero time to look for property. I'm based out of the NoVA/DC area, one of the few seller markets in the US right now. If I had more time, I'd go south and west in the CONUS. My cousin is a broker/re agent in MD and he may assist look stateside for me.

I'm on Zillow and Redfin everyday.

You going to be in Dubai?

What would you do in my situation?

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