As Nicole and I save up for our first rental property, I’m trying to look at all angles before we proceed. We’ve talked about taking out a mortgage again. We’ve talked about saving up to buy all in cash. One method that’s super intriguing for us is the BRRRR Method of real estate investing. We’re going to discuss what that is and how it works today.
Billionaire Warren Buffett once said, “Never depend on a single income. Make investment to create a second source.”
All of the entrepreneurs I’ve interviewed on my podcast (or really any other podcast for that matter) have taken Mr. Buffett’s words to heart. If you’re going to create some serious wealth for you and your family, diversifying your income streams is the key to success.
Saving and long-term investing are crucial pieces to the wealth building puzzle as well. That being said, the puzzle for financial independence can be put together a whole lot faster when you increase your income.
Real estate investing has been something I’ve been interested in for a long time. The ability to own a home that provides a monthly passive income and grows in value at a consistent rate over time sounds quite appealing to me.
I don’t get as excited about flipping properties because it sounds like that’s a very detailed and focused skill. The margins are so tight that you need to be a master at your craft to succeed. Evidently, those well-produced HGTV home flippin’ shows make it look easier than it actually is.
The home mortgage is quite often the largest expense in your typical annual budget. Since your mortgage eats up such a huge chunk of your monthly income, completely ridding yourself of it could be quite freeing.
My wife Nicole and I completely agree with this sentiment of mortgage freedom. We’re just not interested in having a mortgage anymore. So, we’re getting rid of it.
About a month ago, my wife Nicole and I were at a wedding for one of our good friends. At our table, I struck up a conversation with a random guy named Victor Mangona. I discovered that Victor and his wife Kate are both doctors and they live in a swanky part of Dallas called Highland Park. Victor and I got to chatting about their adventures in real estate investing as their new side business.