I hear real estate investors tell me all the time that they want to quit their 9-5 job, and get into the world of real estate investing full time. They’ve usually had a small taste of success doing flips, or with buy and hold rental properties, and think that with more time and focus on their portfolio, they can make it grow even faster.
Sounds fantastic, right?
Well…yes, but the only problem is that the minute you do this, you’ll no longer be able to qualify for a mortgage, at least in the residential world.
If you’re investing in single family homes and condos and have any desire to purchase more, if you don’t have a good job with decent income, you’re going to have a very tough time obtaining mortgage financing, at least in the A World.
Commercial real estate is a totally different thing. Lenders are looking more at the property and the cash flow of your properties than you as a borrower, so you should be fine to pull the chute if commercial is your game-plan.
My recommendation to you is to keep your day job if you’re building up a single- family rental residential portfolio, until such time as you’re ready to move into multi-family or commercial real estate such as office, industrial, etc.
If you don’t have time for both, then look for a career where you can work part time but still make a good income. Nursing, Education, Realtor, Sales, etc. can all offer either part time hours, summers off, or flexible work schedules.
Looking for some real estate advice? Please reach out to our real estate and property management company today!
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