Welcome back to our series on how to build wealth in Real Estate.
This week I have been driving across country with my daughter to take
her to school. I’ve had a lot of time to think and reflect and I wanted to
bring you some of those thoughts, especially for you younger folks who have not
yet gotten started.
Perhaps you even haven't even bought your first home. I bought my first
home at 33. It would have been so much
easier for me if I had started a little sooner.
So here is a plan for those of you who would like to invest in real estate
who maybe even haven't bought your first home yet.
Here's what you do:
First, you look for a home that you can live in that will meet your
basic needs but that would also be a good rental property. Something that would
rent for more than the mortgage payment.
You buy that home and you live in it for somewhere between two and four
Then you look for another home that meets your needs that would also be
a good rental property. You keep holding
on to what we're going to call your departing residence as a rental.
So, you leave your first house and go to your second house. You keep your first house as a rental and
then you stay in that second house for between two and four years for tax
purposes and other reasons. It's important for you to live in these houses for
at least two years in my personal experience. I lived in each house for about
Now, fast forward 20 years and you're going to have five or six
properties. As you pay those properties down,
you'll go into your retirement years with passive income that you can actually
live on. So, if you have already purchased a home and you don't think it would
be suitable as a rental. Let's get together and talk about what is the best way
for you to transition and if you are a little bit later in life and you still
want to get started with investing, let me know. We'd be happy to discuss that
with you but the buy and hold properties from a young age into your middle age will
yield you quite a nice retirement.
I hope this information has been helpful. This has been an interesting
topic. I hope that you also are on the path to financial freedom using real
estate. If you need more information, please reach out to me today.