The first step in your real estate investing career is to get clear about your goals. What do you need most in the short term (1-5 years)? What is most important for the long term (10-20 years)? Assuming at some point you want to own a home you can live in along with some rental properties, here are a few questions to ask yourself or discuss with your family.
Do you want to move into each new purchase?
How comfortable are you living in a more transitional neighborhood
Are you willing to do some fix up or do you need a move-in ready property?
Is it important that your home and rental properties are separate or would you live next door to your tenants in a duplex or fourplex?
We like the technique of working backwards. If you know how much passive income you would like to have in 10 years, you can work backwards to figure out how many properties you need to buy, how much cash flow they each need to generate, and how much money you need for down payments and reserves. That will also give you strong criteria to analyze deals against.
If that all sounds confusing, let’s sit down and talk it through.