Over the years working with real estate investors, I have come across very interesting answers when I ask "How many investment properties do you need to buy?" I have heard from 1 property to 40 properties, 1 every year for the next 5 years, don't know... Most stumble when I ask why? It starts with why. Simon Sinek explains the importance of starting with why in his TED Talk
There are many reasons for buying investment properties, here are some:
- Retirement income
- Fund children's post secondary education
- Job replacement (one spouse might be considering leaving their job)
- Supplemental income
- Family legacy
- Full time real estate investor
- Investment diversification (real estate and stock market)
Once a reason or multiple reasons are chosen, determining how much monthly income the investment properties are to generate is the next step. This goal can be achieved via different investment properties options (single family, duplex, multi-family, commercial....) and various geographic locations.
To complete "why invest in real estate" analysis, reverse Engineer the number of properties you need and have your personalized "how and where" plan developed, click here.