Why choose to house hack on my first deal rather than buy a single family home or even just an investment property? The key is it starts with your investing goals. Before even settling on real estate, I established my main goal is to create multiple passive streams of income that will continue to put money in my pocket regardless of whether I work or not. Once I established that creating passive income streams is my main focus, I explored different ways to create/acquire passive streams.
I quickly settled on real estate simply because when you look at the most successful and wealthiest people globally the one consistent thing, no matter how they acquired their wealth is real estate. They all invest in real estate as a either a means to attain wealth or as a store of growing and maintaining wealth.
This is what lead me to focus on real estate and as I am looking at developing passive streams, buy and hold investing is one of the most straightforward strategies. I settled on a duplex for these reasons:
- Inventory and Price
- Flexibility
- Financing
Flexibility – Looking at a multi-family property versus a single family property provides additional flexibility. I am able to live in one side in the interim and long-term rent both sides. If one side is vacant I only lose 50% of the income versus 100% in a single family home. Duplexes are still traded similarly to single family properties that it provides additional opportunity to sell to either investors or non-investors in the future.
This is why I chose a duplex as my first property – Remember it all starts with your goals for investing then from there you choose a strategy.
[…] Why I chose Real Estate to Start […]
[…] Why I Chose Real Estate to Start […]
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