6 Tips for Beginner Real Estate Investors in June 2021

1. Cash flow is king 🤴. Househacking properties (living in one unit and renting out the rest) is the best way to accrue wealth and have other people pay your mortgage when you’re starting out. It’s much harder to do this in single family, but I know people who've rented out the other rooms of a house to practice land lording.

2. Real estate has held up in pretty much every other recession except 08-09. In some prior recessions, housing prices have gone up. If you look at rent prices though, those have never gone down nationally. So if your property has positive cash flows, you get to hold on to it forever (assuming you run it correctly).

3. Get a fixed rate mortgage if you don’t know what you’re doing yet. This will help you be certain that your rental income is consistent. Don’t forget to factor in repair and capital expenditures (big replacements like for a roof). This apparently doesn't exist in Australia, so you might have a harder time factoring and calculating your expenses every month.

4. Live in an expensive area? There’s a bunch of ways to get a loan with as little as 3% down (0% if you’re a veteran) as long as you live in it. Otherwise investing out of your area is always possible.

5. Location, location, location. You can’t manage your way out of a bad location. You also will have a hard time making money in the best locations and you’re gonna have a hard time renting out the worst. Go for the middle, they’re the most resilient in recessions too because people will usually downgrade from the most expensive neighborhoods. Even people who are foreclosed have to live somewhere.

6. Are you an accredited investor? Then, in the US, syndications are probably one of the fastest ways for you to max your money at 15%+ returns on top of the tax breaks of owning real estate. Let me know if you’re interested in joining one