Real Estate Investing: Part 1

Let’s talk real estate….Part 1.

In particular, REI. Real estate investing. Are you interested in investing in RE? Are you currently an investor?

We started with our 1st home that we turned into a rental at age 21, which we owned for 10 years and sold it 5 years ago. Currently, We have 2 properties. 1 is a LTR (long-term rental) and the other is a Vacation Rental (VR) with over 60% occupancy annually that we self-manage remotely here in our RV. Now that our student loan debt is gone, we are actively preparing for future investment properties.

We believe that Real Estate Investing is a great way to invest and build a path of net worth with a potential to retire early. Here’s some tips for those also interested in REI:

1. Research RE strategies 1st. Understand the different methods of REI. (Short term rentals, long term rentals, buy and hold, BRRRR, 1031 Exchanges, Rehabbing and flipping, etc.). Do your RESEARCH!
2. Once you’ve identified your strategy, research the market and area where you’d like to invest. Reach out to other like-minded investors in that area for insight.
3. Financing Options. Conventional Loans, FHA Loans, Investment Loans, etc. Each have their merits, but you need to understand their limitations.
4. Partner with a local RE Agent in that area. Build a solid relationship with them so they understand exactly what you are looking for. They are your legs and arms in this process. Plus, they know the area. Stay firm with what you want and communicate it.
5. Signup to ALL major RE buying and selling services (Zillow, RedFin, etc). Set notifications based on your search criteria.
6. Money talks. Have cash ready for a down payment and be ready to move if you find the “one”.
7. Avoid PMI at all costs. Regardless of your strategy, turning a profit and having a cash flowing investment is tough with PMI. (Private Mortgage Insurance).