Want to buy more rentals in 2022 but High Prices and High Interest rates are making it tough? I break down my strategy and how I was able to buy 3 houses in 3 years.
I got started in real estate investing by purchasing a house with a studio apartment on the property. I have rented out that studio apartment on Airbnb and now it completely pays the mortgage on that property. This is considered house hacking. House hacking is a great way to purchase your first rental property and get started in real estate investing. I love the passive income from real estate investing.
After purchasing my first rental, I saved everything. I save all the profits from my rental properties. Real estate investing for me is a complete side hustle and all money stays in the business. My full time job is where I get the money I need to cover my daily expenses.
I then purchased a turn-key rental property. The property already had a tenant and she remained at the property. I save all profits from there.
Then I went on to purchase another home, moved there and converted my prior house to a long term rental. Once again I saved all of my profits.
So, how do you invest in rental properties when real estate prices and interest rates are extremely high? For me, I follow these 3 steps:
1. Save Everything. 2. Look Constantly 3. Be Patient
You must save money to be able to purchase real estate. Most mortgages require 20% down. You won't be able to buy a rental property if you don't have money saved up ready to be a down payment.
If you want to find a good deal you have to be looking for good deals. I am constantly googling houses for sale near me. This helps me stay up to date on the real estate market as well as look for great deals.
Look for properties that follow the 1% rule. If you can earn monthly rent that is equal to or greater than 1% of the properties purchase price, then you should purchase that property.
For example, if you can make $2,000 a month in rent on a property that cost $200,000 to purchase, then you should buy that property.
Now, it may be hard to find a good rental property. So you must be patient. Keep looking and be ready to jump on that next investment.
