So, here’s the lowdown: My wife and I are doing pretty well financially, allowing me to pump anywhere from $10k to $15k into real estate every month. The ultimate dream? To kick my W2 to the curb and live off real estate cash flow in the next five years. Right now, I’m all about snatching up single-family homes and duplexes, keeping the leverage on the down-low to ensure a nice cash flow. The portfolio is slowly but surely expanding, and I’m looking at having about $150k ready to put into the game soon. Now, I’m at a bit of a crossroads. Do I stick to what’s been working, adding more single-family properties or a duplex/triplex, and chip away at the mortgage to make sure the cash keeps flowing smoothly? Or do I take a leap of faith into the world of commercial real estate (CRE)? The thing is, $150k might not cut it in my high-cost-of-living area, meaning I might have to venture into a different market altogether.
If you were me, eyeing that sweet cash flow prize in five years and knowing you could keep plowing money into this venture monthly, what move would you make? And just to cover all bases, yes, I’ve got a 401k stocked with index funds, but no, I’m not in the mood to just keep funneling money into that every month.