If you're just getting into the housing market and would ideally like to build a real estate investment portfolio then this video is for you.
In my time in real estate I've helped a number of clients amass real estate portfolios that have put them on the fast-track to financial freedom and all of these clients started out on their own, often-times with modest incomes. While there is a lot to consider when building your real estate portfolio there is one truth that has stood the test of time and that is: the sooner you get in the better. But that doesn't mean you should rush your first purchase and buy whatever is available. Buying the wrong first property can set you behind a solid 5 years or longer.
Buy as soon as you're able to BUT, if you can make it work with your budget, buy a home with a suite. Why, you ask? Well for a couple reasons: 1.) A suite should put you in a better financial position to save for you next purchase but, more importantly 2.) a home with a suite will serve as your first income property which you can later leverage to buy other properties. This isn't for everyone. Not everyone wants a tenant in their space but if you can make it work you'll be years ahead than if you chose a home without a suite.
When you're ready to move on from the house you bought you should be in a position whereby you can rent out the entire house and use the rental income to help qualify for your purchase of your next home and, depending on how the housing market has performed, you should hopefully be able to tap into the first homes available equity to supplement the down-payment on your next home. You can either use the financial tools of your first home to buy the house you want or, if you really want to get ahead, you could rinse and repeat the strategy again and again.
When you're just starting out in real estate investing you're likely to be your most vulnerable financially and its always helpful to have properties with at least two income streams to better insulate you from vacancies and better utilize the money you have invested.
There is of course a lot more to consider about this topic and we haven't even touched on location. If this topic is interesting to you and you'd like more information, or would like to get together to help build a solid strategy, feel free to contact me any time.