Is it possible to rent enough homes out to generate enough income to sustain a living?
What are the considerations that need to be made?
How much would you need to generate to make it viable?
And a bunch of other questions I don't know enough about.
I'm a young attorney quickly realizing that the life of a wage slave is not something I want to experience.
I'm not interested in getting filthy rich, I just want to have FREE TIME again. The hours I work are terrible, but frankly I don't even want to work 40 hours a week.
I want passive income that permits an acceptable level of comfortability.
Is it possible?
Of course it's possible. Personally, I get nearly six figures off of my RE investments and I know a few that get seven.
Investment income can dwarf anything you can make at a job if given enough time
>>1267837
Hell yeah, man. Buy a condo/apartment near a university and rent it out to students, and have their parents cosign. The rent will actually in most cases exceed the mortgage payment, so not only are you building equity, but you're generating income, commonly referred to as "cash flow."
Take your desired yearly income and divide it by 12. That's the cash flow you'll need. For example, living off of $24,000 a year requires $2,000 in cash flow. If you live in an area with high rent rates but low housing costs, you could maybe get $500 per property, so that's around 4 properties to live off of. Other times you'll only have $200 in cash flow, so that's 10 properties. In 30 years, you'll have a few hundred thousand dollars' worth of equity to sell off and retire with, too.
The hardest part about doing this is that you need time and money for it work. You could save up your attorney money, buy a condo, live in it for a few months until you can afford a new one, live in that one, but rent out the old one. You'll get lower mortgage rates this way.
>>1267837
ROI varies. Let's say, after all expenses for holding the properites and allowing for vacancy rates etc., your ROI is 4%.
If you want to live off $100k per year, you need a $2.5M portfolio
Of course, life could be much kinder to you, or much, much worse.
>>1267837
You need to do the math on deposits, mortgages, taxes, possibility of hiring an agent, good areas to buy in so you don't get methheads or even worse niggers
>>1267923
I'd count on an 8-10% return, but only if you buy correctly. There's an old saying in real estate, you make money on the buy, not on the sell.
What percent of a house do I need for a down payment?
I feel like 10%, but I also feel like there are probably a dozen hidden fees that will make it much more expensive.
I need a mentor for this shit. I don't have enough to buy a shitty house yet, but I should be able to relatively soon. I want a light at the end of the tunnel to look forward to. This job is literally killing me.
>>1267983
No, just go on bigger pockets dot com and read their beginner guide
>>1267983
This is your first real estate purchase? You're going to need more than 10% down if it is an investment property or else you're going to be losing money.
>>1267983
I believe FHA loans allow you to use only 3.5%, but you have to pay mortgage insurance.
Basically, you have a down-down payment, then they loan you the real down payment.
There's also "closing costs," which are between 2 and five percent of the home value.
Usually 20% is what lenders look for.
>>1267983
>I need a mentor for this shit.
Google will be your free mentor
>>1268040
FHA also requires you live in the property for the first year.
Biggerpockets.com
this strategy seems dangerous right now, you're exposing yourself to a RE correction.
would you borrow money to buy AAPL?
You usually need 20 percent down for an investment property unless you are going to game the system and buy it as a primary. This is sometimes doable but if you get caught it can bite you in the ass. You need to know the rules really well to get away with this.
Also, putting down less than 20 will result in mortgage insurance and sometimes a higher rate. Since renting a mortgaged property can have tight profit margins that percent or 2 can cost you.
I have considered posing as an owner occupier to get a juiced mortgage deal on a rental, but I used to sell mortgages and my gf is a mortgage underwriter so I have good working knowledge of the process. People get loans denied, or rental certs denied for pulling this shit sometimes.
>>1268040
20% comes into play with mortgage insurance, lenders typically require insurance if your down payment is under 20%.
>>1267837
Yes
Google "bigger pockets"
>>1267923
Well is that cash on cash or internal return?
Remember the tenants are paying off the mortgage which is then equity you can cash out
