Do You Have What it Takes to be a Real Estate Investor?
If you’ve ever had to deal with a landlord, you probably don’t dream of being one: The thought of dealing with on-going maintenance and tenant calls can sound less than glamorous. But done right, real estate investing can be lucrative and freeing. You can add an additional income stream, and possibly leave that 9-5. Not only that, but with current technology and management resources- you don’t necessarily need to show up often, if at all.
The challenge is, not many people know where to start when it comes to investing in real estate, if they have the financial capability to do it, or what form of investing is best for them.
In a recent episode of the Home School’d Podcast, we sat down with Kendra Barnes, a full-time Real Estate Investor and founder of The Key Resource. Her real estate investments afforded her the ability to retire from the 9-5 work life at the age of 32. She created The Key Resource to inspire, empower and educate people about the power of home ownership and Real Estate investment. She currently owns and manages 4 properties (8 rental units total)- and today, she shared with us how to achieve our own financial goals through real estate.
Listen to the full episode for complete info and follow along with all the key takeaways down below.
What are the most common fears of becoming a real estate investor and how can people overcome them?
People are afraid of financial failure, and of having tenants destroy their property. Kendra has laid out the Top 5 Fears potential investors have in a downloadable PDF on her website. Educate yourself, know your goals and figure out what type of investing is right for you. Kendra created a quick Quiz on her website that helps you identify which types of real estate investing are right for you.
What are some tips for investing with the least amount of risk?
Fundrise, invest in tax liens and Kendra’s favorite is house hacking! Buy a multi-unit property and live in a unit/rent the other. AirBnb is also a great way to diversify your portfolio if you have a spare bedroom, or space on your property to take advantage of. For more info about utilizing Airbnb to generate revenue, check out our episode with Nick and Sarah from Nestrs.
How do you know if you’re financially ready?
Have at least 3-6 months of your personal living expenses saved up (at minimum). Are you personally able to pay the mortgage alone for 3 months? Once you have that savings available, you can consider the different investment opportunities out there.
What are some options for down payment assistance?
There are so many grants and options for down payment assistance. Keep in mind, you have to use these on houses you’re actually going to live in (another reason why house hacking is so great).
When you’re looking at properties, what are the key characteristics to look for in a good rental?
Location! What’s nearby? Hospital, college, military base etc. Public transit is also something to be aware of. Go to the city planning office and see what they’re planning on in the next few years. Also look at trends in the area!
Once you buy the rental, what do you typically do to get it move in ready? Any budget friendly tips?
Craigslist, Facebook Marketplace, furniture auctions (BACauctions.com) and buying unboxed appliances.
How have you streamlined your process to make it easier on yourself?
Using online systems for accepting rent payments like Venmo, Zelle, Paypal, etc + clear communication, and setting personal boundaries with tenants.
Cashflow: Find it here
For more information about real estate investing, visit Kendra’s website The Key Resource, and make sure you’re subscribed to the Home School’d Podcast for weekly Home Improvement content and information.
For more Home Improvement info check out some of these DIY Home Improvement Projects.