Multiple Streams of Income

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cfbmemes_

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You know besides the 9-5 day job? What do you do to make some extra cash? As a poor public school teacher, I want to know!
 
Did lots of stuff when I was a cop, friend ran a cemetary, I did day labor for him, did construction on my own and worked for a friend, drove school bus as a substitute for a friend, butchered deer for the local butcher...
 
I used to lay floors,, ceramic tile and laminate, did my own first, then a friends, then their friends,, on and on.. pretty good income for after work gigs but hell on your knee's..
 
Landlord. It’s the first bill people pay...unless they know how to scam the system. I have a multi-unit house in a historic neighborhood near downtown, so it’s popular with students and young professionals. The students are usually either getting loans or help from family and always have roommates, so location is more important than the price. I also live in one of the apartments, so the potential bad apples realize it’s not worth it to move in here. I know all the legal things to say that make people I don’t like not even put in an application.
The only 2 times I had a real issue with non-payment was when I rented to people I knew.
 
Shower Fart said:
Landlord. It’s the first bill people pay...unless they know how to scam the system. I have a multi-unit house in a historic neighborhood near downtown, so it’s popular with students and young professionals. The students are usually either getting loans or help from family and always have roommates, so location is more important than the price. I also live in one of the apartments, so the potential bad apples realize it’s not worth it to move in here. I know all the legal things to say that make people I don’t like not even put in an application.
The only 2 times I had a real issue with non-payment was when I rented to people I knew.
Click to expand...


How long did it take to save the 20% for purchase?
 
FifthQuarter said:
How long did it take to save the 20% for purchase?
Click to expand...
It took me about 2.5 years of being serious about it to save about 15% for the house I ended up buying 20 years ago. Realistically for a multi-unit, you need 25 or 30% for a down payment because lenders don’t allow you to count the rental income if you don’t have experience as a landlord.

I was lucky enough to have some creative financing available. A family member needed a tax write off, so they funded the rest of the down payment in exchange for being able to write off the mortgage interest for several years (can’t do that any more). That’s not an easy thing to pull off, since we needed to purchase together, be on title and mortgage, etc. that takes some trust, but it let me buy a nicer place with higher rents.

A friend of mine bought a small Cape Cod, pretty much right out of college with an FHA loan. He rented rooms to 2 of our friends, which almost covered his mortgage. If you’re a veteran, the VA loans are, by far, the best ava to anyone, you can buy with zero down. I’m not sure if joining the Reserves would make that available to you, but worth looking into.

If I hadn’t had the situation I did, I was going to buy a house from the woman who was my landlord, she owned about 40 houses in the neighborhood. I had asked her for advice on how to get into the business and she offered a land contract and took me through a couple houses that she was willing to sell. Since she knew me already, and it was owner financed, it would have dodged some of the usual hassles for first time buyers/landlords.

I know another guy who started out by offering to be the property manager for another big landlord, he basically earned equity in a few houses over the course of years, learned a lot, and he bought more properties and that’s his only job for years now.

Be creative and don’t be afraid to ask questions, a lot of property owners want either less hassle, or to cash out in tax friendly ways.
 
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