New to investing and would like some advice.

[Robert Painter]

Hello, my name is Robert and I'm 42 looking to replace my working income with passive income by the time I'm 52. I currently live in St Peters Missouri just west St Louis Missouri.

I currently drive truck for a living. Although I love my job I don't want to do it for long. The problem I have is available time. I am on the road for 11 days at a time and go home for 3. And most of my home time is spent with family.

I have a 700+ credit score and bring home about $6000 a month net I have about $3000 a month in expenses. I have about $30000 in available equity in my home.

Anyway with my limited knowledge of investing I can only see two options for me. Until I am able to quit Trucking and be available to be Hands-On

1. I can buy $100,000 turnkey properties with 25% down once maybe twice a year. With a property manager. But I am concerned on how many loans I could have at once

2. I could invest in other peoples flips are projects.

Anyway I'm just looking for advice on what path I should take or if there's other options I'm not aware of.

[Matt N.]

Rob,

Most will say that your first deal should be turnkey, in B class areas. This is truly passive if you have a good management team. But if you want to quit truckin' in 10 years, this is not an aggressive or scale-able strategy. You said it yourself, you can buy 1/year, and loans will eat up your cash flow. After 4 loans, it gets hard to find financing. So you can do this for 4 years, be in a lot of debt, and cashflow 200/house if you do it 100% correctly. 800/mo wont let you quit your job... I would still buy one of these for your first deal. Get your feet wet. Nothing wrong with a home that makes you 200/mo. 

I've had good luck buying 35k dollar homes, in C class neighborhoods. I spend 2x time finding good tenants than I spend finding and fixing the homes. The key is finding good tenants. Try to attract people who have family near by, a stable job near by, and who care about the neighborhood. They will stay long, cause less problems, and take care of the home. Master this, and you can buy one of these per year for infinity years, take on no debt, and cashflow 500/door.... then when you feel really good about your deals, take HELOCs on a few of them and now you have a personal line of credit to buy more, improve more, or to step up and get into multi-fam.

Reach out, happy to chat, 

Matt