- Did you jump in with both feet on real estate investing or did you keep your primary job while starting?
My 2nd run at REI - first time was in 2/2007 (and was a disaster). This time is working out much better. Kept primary job. Funneled wages into down payments for first 3 properties.
- How much time (hours a week or month) did you spend building your business?
I read A LOT, and after meeting ARebelSpy, and learning of his success, I read
every book on this forum's recommended book list. Then I read other books, the best 2 of which are "The Millionaire Real Estate Investor", and "Landlording on AutoPilot". As for actual 'work', I'm at around 8 hours/week, and reading in my spare time in the evenings.
- What are some things you would do differently if you had to start over? Would you start over?
(this... and see last question. And yes, I would / have started over in a reasonably priced blue-collar market town)
I would look for other books like BiggerPockets "Real Estate Rewind" where long-time REI's give their best advice. I would buy my first place for cash, live in it while repairing & doing 'deferred maintenance' to bring it up to my standard of living, and adding things like USB electrical outlets, metered water service for all sides of duplexes, etc. On books: Most books on REI are all alike, but once in a while you'll come across 1-2 pages that standout. Brandon Turner's yellow book ("The Book on Managing Rental Properties") was like that... repeating other advice I'd read elsewhere... until p. 277(?) gave the drop-dead-simple suggestion: "use the categories shown on
IRS Schedule E to sort your expenses".
WOW! Build a spreadsheet with those columns, and you'll be ahead of 90% of the others at tax time:
(by line# - Income:) 3 Rents received, 4 Royalties received, (Expenses:) 5 Advertising, 6 Auto and travel (see instructions), 7 Cleaning and maintenance, 8 Commissions, 9 Insurance, 10 Legal and other professional fees, 11 Management fees, 12 Mortgage interest paid to banks, etc. (see instructions), 13 Other interest, 14 Repairs, 15 Supplies, 16 Taxes, 17 Utilities, 18 Depreciation expense or depletion, 19 Other (list)
- How many homes did it take for you to achieve FI, meaning you could support your lifestyle through rental income?
One (1)!! I reached my FI number in 4/2018. Half of that is invested in VTSAX, and the other half is in a house purchased in the Seattle area in 2014 that's
doubled in value over the past 4 years. I'm selling that house, and using that half of my FI $$'s to invest in additional SFH & multi-family rentals in Indianapolis. If the math works out, I should be able to more than cover my FI expenses with 7-to-8 rentals. So technically, everything I've saved to date ends up being a HUGE emergency fund that I never expect to touch.
May your results be as good, and may you not make the same mistake I did by saving up TOO MUCH before you start investing in RE where your recurring income becomes your FI income. Best of luck being a 'property manager'!