Quote:
Originally Posted by GregWeld
HUGE KUDOS TO YOU MY FRIEND!
Here's my one though I will add to your investing... Diversify. Don't just do all single family rentals. Stocks will add income - usually over time they grow - but more importantly for YOU - they will be LIQUID. So - I'd build a portfolio of dividend paying stocks.... to add to your housing empire. Seldom do all facets of investing work in conjunction with each other. Housing can go up - stocks might be down - interest rates WILL go up from here which will cause your housing to take a "hit" if they rise too quickly or too far... So you want BALANCE in investing. What happened to MANY MANY people is that all their liquidity dried up when they needed it most... that's a very very bad thing!
If your two houses go up enough -- you might try parlaying them into a fourplex or something similar but don't keep borrowing on them. The key here is to build a retirement cash flow - and that happens when your renters pay off the balance and YOU become the bank!
I have a friend that lives in a 12 million dollar house -- he started out doing EXACTLY what you've done. He parlayed that into 1000's of apartments. It didn't happen over night -- and his apartments are the type I invest in -- LLC's with investors -- his company puts the deals together - and they manage them. Sweet deal.   |
I have been a little reluctant to look at multiplexes even though the ROI is usually much higher than a SFR. Both of my mentors have had bad luck with them and in my area multiplexes are typically in the not so desirable areas. That's not to say that it is not a possibility but it may be down the road once I have a little more time (confidence) under my belt.
The one thing I have been really thinking about lately is starting an LLC for the rental property. Many of the regulars at biggerpockets have recommended starting one for any rental venture. The problem I see is that technically you will need one for each property. What are your thoughts about that?
Property management is another subject I have been thinking about. For the time being I am more than happy to manage the one property by myself. With the future possibility of managing multiple properties in my spare time it may be worth every penny.