Have you thought about investing in real estate but don't know how to get started? It can seem like an overwhelming process to build a real estate portfolio, but it doesn't have to be complicated. Here is a great way that you can build your net worth and eventually create a stream of income.
1. Start by buying a home. If you can, find a duplex, for an even better scenario. Consider how you can rent out other bedrooms, the basement, garage, or other spaces to help cover the mortgage and build savings faster.
2. Live in the property for 1 to 2 years. While you're there, make any necessary improvements to make the home easy to rent and maintain.
3. Buy another home and move into it. You will need 5% down payment which may come from the equity in the first property by using a HELOC.
4. Rent out the first property. The rent you charge the tenants will need to cover the monthly mortgage and maintenance plus some additional to build a reserve to help with any vacancies and repairs. Your tenants will be paying down your mortgage while you build equity. If you aren't comfortable with the idea of being a landlord, you can hire a property manager to help with maintaining the property.
5. Repeat this process every year or two. You will eventually own millions of dollars of real estate and generate passive income.
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1900 W 32nd Ave., #200
Denver, CO 80211
Marla Doughty