Hello Bigger Pockets. I am a new member who has gotten through the first 25 podcasts over the past week (a little hooked..) and has found a ton of value in the posts on the website in the short period I have been involved. I am an agent in Jacksonville Florida and have always had investment interest but have only recently considered making moves in my investing career.
Instead of use this first post to ask everyone for how to make a million in a day, I figured I would share my initial investment strategy that I am hoping to begin within the next 12 months/...all feedback is appreciated.
Ideally I am hoping to take the time necessary in finding the right buy and hold property. Keeping in mind reserves, operating expenses including vacancies, and comparable rental rates I would ideally wait for a property I can pay 20% cash down and net $200-$300 cash flow being conservative on expectations.
My idea is to have reserves before investing in this property, which will allow for me to utilize the extra cash flow and put directly on top of mortgage payments to help pay more and gain equity in that property at a higher rate. Once enough equity is built in this first rental property, I would then (when the right property presents itself) pull out a HELOC and use that as a down payment on a second rental property.
If I can generate around the same amount...if not more....of cash flow from the second property I would then use both positive cash flows to pay off the first rental in full as soon as possible. With that mortgage gone, I would then be able to put $1k+ of cash flow from the first property to pay off the second property quickly.
On paper this sounds like a great way to start if I could not only gain 2 large assets by paying off their mortgages quick, but triple or quadruple my monthly cash flow after I get them both paid off. Once those two are paid off it is fair game on expanding my investment strategies and really taking advantage of the opportunities that are out there...
Knowing I have not done this before, and know I only have enough capital for a down payment on 1 rental property plus reserves, is this a realistic goal to have or should I save buying and holding for later, and try out Wholesaling or Flipping first to gain the capital to buy and hold multiple properties at once from there?
Like I said any feedback is appreciated. Thank you.
