I’ll get right to the point with this point. Continuing from yesterday’s post, the other income option I’ve chosen is investing in real estate. From what I’ve seen on Youtube, it’s a definitely a viable option that I can rely on getting income in addition to my 9-5 job and eventually replace said job with it and gain passive income from it. I’ve seen different strategies for investing in real estate and at this point feel that I’ve found at least one that is straightforward for me to try out. This would be investing in small multifamily homes primarily and doing fix-and-flips secondarily.
To be honest, I’ve always been aware of the fix-and-flip strategy but I’ve never thought of investing in multifamily homes. For the longest time I’ve been focused on buying a single family home for myself and possibly renting it out but after learning more about options for multi-family I couldn’t care less about single family homes. My ideal scenario for the next few months is to find a local fourplex (4 unit home) that I can afford to buy via an FHA loan and house-hack (i.e. live in one unit and rent the others). This would allow me to live as an owner-occupant landlord and have my housing expenses paid for by my tenants. Furthermore, if I pay my cards right, I could have a monthly rental income far exceeding the expenses for the property and with this “cash flow” I could use it to invest in more multifamily homes to use as rental properties.
Looking at it from the relative short term and long term perspective, investing in real estate via multi-family homes is my main bread and butter to building wealth and eventually financial independence. Its a venture that I could definitely start this year and being profiting from. In fact, in terms of money, I could afford to start right now but this is something I don’t want to screw myself over by not doing enough research first. I’ve started reading a book “How to invest in real estate: the ultimate beginner’s guide to getting started” by Brandon Turner and Joshua Dorkin as a start and will probably read others as I focus on researching processes for buying and renting out multi-family properties specifically. I’ve created a profile on a website called Biggerpockets and it seems like it’ll benefit me due to being able to network with established real esate agents and other investors. I really look forward to making progress with this option.