All Forum Posts by: Austin Phelps

@Austin Phelps

20% down on a SFH in a working class neighborhood (C+ class hood). Your cash flow will be good and appreciation is the highest with starter type homes due to low inventory. And turnovers will be almost zero since most of these people won't be able to afford or qualify to buy a home of their own. Keep repeating. They'll be with you for years/decades and pay off your mortgages. Refinance after 3-5 years after they've appreciated and use that cash to buy more and more. This is my strategy and I've been able to buy 2 rentals a year for 8 years with way less income than you. Good luck!

 Your down payment needs to be what you are comfortable with and makes your analysis work.  Your lender will have requirements as well.  I do recommend using debt to buy your properties.  I'd rather make a 20% down payment on 5 properties than a 100% down payment on a single property.

When it comes to location, again it depends on your situation and preferences.  I personally prefer colleges because there will always be students.  Some prefer large medical centers or other high density job locations.  Some prefer touristy spots.  In the end, what really matters is the numbers work out and you understand what you are getting into!

 Flip will be the quickest way out -- especially in an appreciating market like Florida.. conservative states are booming. 

Also could build a rental portfolio for long term wealth, but that takes a little longer. The REI company that I ran acquisitions for did a bit of both.

Here to help you get a second set of eyes on deals if you want. Obviously in the alternative lending space as well.

I'm going to echo some of what people have said here and give my own experience. On the bright side, you have more than enough cashflow to purchase a property. You have a lot of possible avenues you could go down so it's important to set your goals. 

WHAT? What kind of property are you looking into? Single-family? Duplex? Multi-family? 

WHEN? You mention wanting to be able to leave corporate life. What is your timetable? Do you want to leave your corporate lives in the next 5 years or the next 15 years? How fast would you like to scale?

HOW? How do you plan on financing the property? How much do you want to put down? Do you have a preferred class of neighborhood? Preferred town/city? I see that you want to LTR. Do you plan on self-managing or do you plan on hiring a PM? Do you know how many properties you would eventually want? Depending on your affordability, would you do one nice property or two not as nice properties that you may need to fix up? This may depend on your current time commitments. If you don't have the time, turn-key may be a great option for you.

I realize this is a lot of questions but this needs to be fit to your needs and wants. Speaking from the perspective of an agent, I would love to sell you tons of property but that might not be the right situation for you.
 

Hey!  Here's by take on these types of questions:

First, figure out your goals.  Wanting to leave corporate America is great, but it isn't specific enough.  What will that take?  What's the timeframe?  How much risk are you willing to assume?  

Second, find the type of investing that lights you up.  I love long-term rentals.  I also enjoy a flip every now and then.  However, you won't find me messing with short-term rentals or syndications.  Those things don't keep my attention, so I don't bother.  There is a ton of information in these forums.  There are also many books in the bookstore that every investor should read.  Take your time and study up.  

While you're doing that, save save save!  Save up for a nice-sized down payment on something.  When you have your capital saved up, engage with the experts.  Realtors are a great place to start because they can normally point you to the lenders, contractors, inspectors, and property managers you will want to speak with.  

When all this is done, TAKE ACTION!  You can't start real estate investing without making an offer.  The first one will be scary and you will be full of doubts.  Just trust the education you've given yourself and realize that a mistake is not the end of the world.  Continue to move forward and consult your experts.

Good luck and I wish you great success!!