Author Topic: Do I have enough to become a full time landlord?  (Read 3632 times)

StartingEarly

  • Bristles
  • ***
  • Posts: 427
  • Age: 29
  • Location: Wisconsin
Do I have enough to become a full time landlord?
« on: February 01, 2015, 09:09:47 PM »
I am in central Wisconsin with about 90k in liquid net worth.  I am thinking about getting into multi unit apartments.  They seem to have a pretty good rent to price ratio around here.  I don't know a whole lot about it and am wondering if I should keep waiting or if I have enough.

expatartist

  • Handlebar Stache
  • *****
  • Posts: 1810
  • Location: The Big Lychee
Re: Do I have enough to become a full time landlord?
« Reply #1 on: February 01, 2015, 09:17:24 PM »
Depends on many factors. Check out BiggerPockets.com. There's a frequent poster from Milwaukee who routinely buys affordable properties in Wisconsin. Should be plenty of other Wisconsinites as well who can give you great advice.

Good luck!

Fishingmn

  • Bristles
  • ***
  • Posts: 335
  • Location: Twin Cities
  • You never have to recover from a good start
Re: Do I have enough to become a full time landlord?
« Reply #2 on: February 02, 2015, 05:56:06 AM »
Your question makes it sound like you want to quit your current job to focus on investing. I think that's a really bad idea. I have 11 properties and still work my regular job as a Realtor (granted it's flexible).

Until you actually get some success with real estate investing you should keep your current job. It will keep bringing income income while you build up your portfolio and see if it's something you even can do well. Personally, I wouldn't quit your current job until you have the income coming in from real estate that will support your lifestyle which is likely to be awhile.


Setters-r-Better

  • Stubble
  • **
  • Posts: 110
Re: Do I have enough to become a full time landlord?
« Reply #3 on: February 04, 2015, 04:59:13 PM »
No. Follow previous poster's advice.

jmusic

  • Bristles
  • ***
  • Posts: 465
  • Location: Somewhere...
Re: Do I have enough to become a full time landlord?
« Reply #4 on: February 05, 2015, 09:18:44 AM »
Agreed with others. 

I just played Cashflow 101 (The game is good, just stay away from the RK seminars!) last night at a Meetup and in the game, you don't get to quit the "rat race" (read: day job) until your passive income > expenses. 

Not only that, you'll need a buffer as your first deals will not be home runs.  You'll also probably need financing eventually, which means you'll need a job if you want a bank loan...

escolegrove

  • Stubble
  • **
  • Posts: 164
    • Reluctant Landlord
Re: Do I have enough to become a full time landlord?
« Reply #5 on: February 06, 2015, 09:51:24 AM »
Knowing your market is very important. You need to be capable of being flexible and rolling with a market change. Can you take a large repair expense or other "Stress".

That being said we got started with 17k of liquid cash, great incomes and very little else as we were 23 :) We got started in single family homes. Multiplexes didn't make sense in my area. We lived in the single family, fixed it up and than rented it out when we are transferred (military). I know many people who have bought a 4 plex live in one unit and rented the others. They got started in landlording with a gentler amount down. As personal property is 0-5% down versus 20%+ for investment property.