Quadruplex scenario

If you recently read the duplex scenario, the quadruplex suite scenario is very similar. I would buy a four-family building rather than a two-family building. Again, I don’t think this scenario is as good as the room mate scenario or in-law-suite scenario, because there are fewer quads around to purchase, …

Duplex scenario

If you recently read the room mate scenario, the duplex suite scenario is very similar. The only real difference is the rate at which I get to 10 rentals. So if you haven’t read the room mate scenario yet, please read it now and then also read the in-law suite …

In-law Suite scenario

If you just read the room mate scenario, the in-law suite scenario is very similar. The only real difference is the rate at which I get to 10 rentals. So if you haven’t read the room mate scenario yet, please read it now. In the in-law suite scenario, the first …

Room mate scenario

The room mate scenario goes like this. I find a 3-bedroom house that fits all my regular criteria for renting it out, but instead of renting it out to a single family, I live in one bedroom myself and rent out the other two bedrooms to two room mates. Obviously …

How I would start from nothing

But how could I start investing in real estate if I had no money? The answer is a non-profit charitable organization called NACA, that offers loans with no down payment and no closing costs. The magic is that they loan money on “income producing properties”. I would have to live …

Starting Investing from Nothing

This summer marks 40 years that I’ve been in the rat race. How much I wish that when I was 18, I realized how desperate I would later be to exit that race. I bought my first residence when I was 26. If I knew then what I know now, I would have bought rental real estate and then retired ten years ago. Instead, I must continue the rat race for several more years.

Were I 26 again today, I would follow my thoughts outlined AT THIS LINK. After 15 to 20 years, I could have 10 rental properties generating $40,000/year in cash flow after tax. That’s comparable to a $60,000/year job before tax, but without the rat race, requiring only a few hours of effort per month. I could easily retire at age 46. Was my dad still working at that age? Yes, he was. He was working until the day he died.

Even better, after another 10+ years, that cash flow would begin rising as the 30-year mortgages on those houses started being paid off in full. The cash flow would reach roughly $80,000/year, after tax, in today’s dollars. By the time I reached traditional retirement age, that’s what I’d be earning simply from my real estate holdings. That doesn’t include any savings from my rat race day job, and it doesn’t include any Social Security from the government. Furthermore, I could leave that income to my heirs when I die. Imagine a young person starting off in life with that kind of income. It’s “generational wealth”, all kicked off had I known then what I know now.

But how would this actually work? …

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Houses

The kind of real estate I like to invest in is SFR’s, Single Family Residences.  These are detached houses.  They’re all over the place, they’re on the market all the time, they make good income producing properties as rentals, and most importantly…  they’re very liquid.  If you decide you won’t to …

Buy and Hold

What I mean by “Buy and Hold” is that you buy a piece of real estate, and then old it for the long term. While holding it, you rely on income that the property produces, such as rental income. My personal experiences have been much better buying and holding real …