A potential trap people may fall into is that they will borrow to source a down payment, therefore ensure you check existing debts and cash flow carefully otherwise you might be in over your head.

For example, I am a little concerned about some aspects of the business cycle recovery and a potential for a double-dip so I lean toward the safest part of capital stack which is debt (or low-debt equity).

STRs sound like too much work to me.Portfolio income = stock dividends, interest income (from banks, credit union etc), Master Limited Partnerships (Form K-1), Business Development Companies (Form 1099), bonds, interest earned from investing in a real estate debt fund, interest earned from being a private lender

So get liquid and get to know people who are liquid because the debt markets are going to punish valuations in a big way starting in Q2 2025 

Here’s a rundown of my current situation:- Own an S-Corp (landscaping) generating 70k a year- 160k in available cash funds- Credit score around 720- Zero debt- Own one property valued at 365k, 30% equity- Property is rented by the room generating $400 a month after mortgage and taxes- Additional 590sqft house is being built in rear of property for 60k.

I paid off all debts with the exception of my home; and now i feel i am ready to start in real estate.

Your biggest issue with 5 bedrooms is that 50% of your income is going towards the mortgage, I do not believe banks would even lend to you with a DTI above 40-45 (mortgage + other debts).

Some loans like DSCR (Debt Service Coverage Ratio) loans are based on how the property operates as a rental (income, expenses, etc). 4.

I'm thinking of downsizing it and combining two of the units to where it might at least a 2/2 but maybe a 3/2.

Not sure how often that happens and to the extent it does, how much individuals are receiving.Trying my best not to politicize this, but have to add that massive bailouts are going to continue to get harder to afford with the high federal debt we have today.