All Forum Posts by: Jon R.

@Jon R.

Having pursued real estate investing for over 25 years, my journey can be aptly described as "haphazard, time-sucking, disjointed" but wonderful.  

Although some are "struck by lightning," I believe a 5 year plan to financial independence is unrealistic, unless you are happy living in a hovel and eating out of a can.   

Much of the joy in this business is in the journey.  If you hate the journey, you will have a tough time reaching your goal.   

Hey Jon!

First of all, CONGRATS! 

What a beautiful decision you made. I am hoping for the best for you and your pursuits. REI is so awesome, I swear. No matter what age, ethnicity, handicap, or circumstance we find ourselves in, REI is so versatile and able to provide freedom at any level for anybody.

You have a lot of great advice on here already, but one strategy I would consider is short-term rentals. It does take a lot of work compared to a long-term rental. But depending on your personality, your skillset, and your motivation, it might be worth it to explore. Not only is it good to diversify your portfolio, but STR's can satisfy all five of your goals, especially if you can leverage vacation home loans for 10% down. Eventually, you can transition to DSCR loans when you reach your loan limits, but by then, you should have enough cash flow to purchase a property every other month if you wanted to (depending on what market you buy in!).

You can self-manage and achieve this goal faster using the methods Avery Carl taught us about, or you can hire a PM, for a more passive route, but that would take a little longer.

Some great resources that have helped me learn about this stuff:

https://store.biggerpockets.co...

https://www.youtube.com/c/Robu...

https://www.youtube.com/c/TheR...

I started investing at the age of 46. In six years I've build a portfolio that earns me $150,000+ a year. However, I started before the market went crazy. Your experience may be a little slower based on current market prices, but it can be done.

Definitely look at larger properties, particularly mobile home parks and self storage where you can scale faster and get a better return.

Hi Jon, Congrats on your decision to invest in real estate.  I highly recommend the Janesville-Beloit, Wisconsin area for investing.  There is a steady supply of great deals with consistent 20% cash on cash returns.  Feel free to give me a call if you want to discuss.  Good luck.

My opinion is the more units, the better.  You can spread out the vacancy risk and your annual rent increases are exponential compared to fewer units.  

I'm willing to bet that once you have your first property, that passion will be there!

I am from the bay area, California too and I have been investing out of state for couple of years now with a similar goal of achieving same passive income as W2. Let's connect and I will share my experience and insights.