Property Investing in the U.S.: It’s Easier Than You Think!
Everywhere you turn, property experts are touting strategies like leveraging other people’s money, seeking out motivated sellers, teaming up with investors, buying HMOs, and flipping properties. But honestly, I find the whole process much simpler than that.
Here’s a straightforward approach:
- Grow Your Business: Aim for a net profit of over $10,000 per month. It’s more achievable than you might think!
- Save Aggressively: Within three months, you could save up $30,000 (remember, you’ll have taxes on this). By the end of the year, that could be $120,000.
- Invest in Property: Each year, use your savings to purchase two 3-bedroom houses, each valued between $250,000 to $300,000. Let’s assume these properties are in areas similar to the suburbs of Atlanta, though rental prices can vary, so do your homework!
- Manage Your Mortgages and Rents: With a mortgage of around $1,000 per month for each property, you could rent them out for about $1,500 per month. This could net you a profit of $500 per house monthly, or $6,000 annually, while also building equity that could increase by 5-10% per year.
- Long-Term Gains: Over a decade with just two houses, you could see:
- $120,000 from rent (plus any increases).
- $165,000 in equity growth (assuming a 10% rise in property value).
- A total profit of $285,000 with just two properties.
- Scale Up: Imagine if you expanded to 10 houses, buying 2 each year for 5 years. The numbers could be staggering!
Of course, there are other factors to consider, such as taxes, withdrawing money from your business, real estate transfer taxes, legal fees, etc. This is where it is advantageous to have a Real Estate Attorney and/or CPA in your corner. While doing things ourselves and with our own money is simplified it’s important to remember that we always need the right people on our side.
You probably don’t need a ‘property guru’ or an expensive course to figure this out. The key is to focus on 3-bedroom homes or larger, attracting families who are more likely to settle down for longer periods. But first, FOCUS on that business!