What’s the trick here?
In the 1950s, Ryan Chaw’s grandfather purchased several properties around the San Francisco Bay area, and over time, real estate market became “hot” than ever and rental income also increased. Ryan Chaw has always understood that real estate is one of the best ways to build passive income, financially independent wealth.
The guy shared, “Because of this, I realized that real estate is one of the best ways to create wealth. Therefore, I want to start as soon as possible.”
Ryan Chaw is a pharmacist, but over the past 6 years, he’s also built a passive income impression entirely through real estate, bringing in more than $70,000 (VND 1.61 billion) per year. Here are strategies to help Ryan Chaw get there.
Do more jobs before you buy your first real estate
When he graduated from pharmacy in 2015, Ryan Chaw immediately started saving to buy investment real estate. Not only did he “plunge” into the job market after earning a college degree, Ryan Chaw also worked overtime in shifts. “I worked two shifts from 7:30 a.m. to 11 p.m. Even though I was quite tired, almost every day I spent 12-16 hours a day at work.”
His goal is to save enough money for a quick down payment so that he can start investing in real estate as soon as possible. About a year after starting work, Ryan Chaw bought his first property for $262,000 ($6 billion) in 2016.
Buy the first real estate in a place where many students have a need to rent a house
Chaw specifically chose to purchase a home in Stockton, California, a college town, to provide student rental housing as an alternative to on-campus housing.
The first property he bought was a 3-bedroom house, which was converted into a 4-bedroom. Instead of renting out the whole house, he rents out individual rooms – in this first house, each unit costs about $600. “A little over $1,800 with 3 rooms, but then I rented that fourth bedroom and added another $550. So the whole place rented out for about $2,500 (57.4). million dong)”.
This strategy worked for Ryan Chaw for a couple of reasons: It allowed him to make more money than he could possibly afford, renting out individual rooms rather than the whole apartment. Plus, his prices are lower than on-campus student housing, and thousands of students enroll each year, never short of potential tenants.
Keep reinvesting your rental income
Ryan Chaw wants to continue his college city rental property strategy. He used the money he earned from his first property to buy more houses in neighborhoods near universities. He plans to buy 1 property per year; Using the profits from his first investment, Ryan Chaw bought two more homes.
He then borrowed a home equity line of credit worth $100,000 from his first house and used that money to buy two more homes. Currently, Ryan Chaw owns 6 properties across Stockton and Sacramento with a total of 29 tenants. He bought a 6th house with money he invested in a mutual fund in 2020.
Each room rents for around $600 (VND 13.8 million), allowing Chaw to bring in a rental income of around $18,000 (VND 413 million) per month. After paying his mortgage and other expenses, his profit cash flow comes in at about $6,000 per month.
When looking for the right property, he usually aims for a house as close to the school as possible with 3 bedrooms, 2 bathrooms and more land that he can add in another bedroom. “I also want the property to be in the best possible condition. Because I don’t want to have to remodel the whole house every six months, that’s really eating into my bottom line.”
at Blogtuan.info – Source: Kenh14.Vn – Read the original article here
