Quote from @Karl Denton:
Quote from @Doug Kirk:
Newbie in the North Central Ohio area (Lucky me) who hopes to have about somewhere around 6 digits near the new year to start out with and cannot decide which way to go. I make good money and am single. Goal is to try for 8-10 Properties and try to leave my W-2 in 3-5 years. I can't decide whether to be aggressive on buying and paying down one or spread on a couple and pay down slower. I want to limit my risk as not knowing where the economy may be going.
Congrats on being in such a strong financial position to start your real estate journey! It sounds like you're on the right track with a clear goal in mind 8-10 properties and leaving the W-2 in 3-5 years is ambitious but definitely doable with the right strategy.
When it comes to whether to be aggressive with paying down one property versus spreading it across a few and paying down slower, it really depends on your risk tolerance and long-term goals. If limiting risk is a priority for you, spreading your capital across multiple properties can diversify your investment and lower your exposure to one single property or market downturn. Plus, leveraging multiple properties can help you scale faster, and the cash flow from several properties can compound over time.
That said, paying down debt aggressively on one property could provide peace of mind and financial security, especially in an uncertain economy. It reduces risk by lowering your leverage, and once one property is paid off, that cash flow can then help pay down others even quicker.
A balanced approach might be to focus on acquiring a couple of properties initially while keeping some reserves, and then reassess based on how things are going. Keeping an eye on the market and maintaining flexibility will help you pivot as needed.
Good luck, and congrats again, seems like you're setting yourself up for success!
Right. I have considered the math and the concepts behind them. I was more asking if there are aspects I am not considering or missing besides the obvious. I think paying off as I go will build the momentum from the bottom in my case barring . I am also 50 so hence my aggressiveness on the timetable.
Thanks for the reply and I am sure there are many ways I can drive this off the rails if not careful so I would hold on any congrats but thanks. And good luck to you as well.
