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Rental Investing Goals Made Simple
Knowing how to set goals for your financial future is important to achieving amazing things! This is also important to consider with your rental properties.
As a rental property owner, you need to make goals! In this article we discuss goal setting for rental investors and steps to make the best goals for the best outcomes!
To make goals as a rental property owner, you must first create a vivid vision of your future, then you must learn rental property calculations. Lastly, you should determine how many rental properties you need to achieve financial freedom.
Step 1: Create a Future Vision
When thinking about creating goals as a rental property owner, your ultimate goal should not be to have “X amount of properties” or to have “X amount of dollars”.
Instead, it is important to consider that it is about the path itself that you are striving for.
What this means is to first think about what is considered a vivid vision. This is essentially a detailed explanation of what you want your life to look like in the future!
This is not necessarily like writing down goals but is more like taking your goals and maximizing them by ten!
This concept is based off of a book called the Vivid Vision and it is used in many businesses. Now, we won’t worry about that for now but for this first step what I want you to do is sit down and really think about what you want your life to be like in the future.
This can include what if feels like, what you have achieved, what house you live in, how it feels to be driving your dream car, what the air smells like when you peacefully go on walks with your family…the examples are endless.
Including your emotions during this is important! Now, what is typically recommended is doing this exercise for your life 3, 5, and 10 years in the future. 10 years can be hard to estimate but it is usually the most exciting vision you can create.
After spending time daydreaming about how your rental properties can improve your future, be sure to write it all down! Get detailed. This will be what keeps you motivated over the years!
Step 2: Learn The Numbers
The second step to creating goals as a rental owner is to understand all rental property calculations.
I’ll be honest in saying that there are a lot of math equations that comes with assessing rental properties! Thing is, since rental investing is investing, it is risky. It is not guaranteed. Therefore, there are calculations that have been created to help guide an investor to understand if a property is potentially a good buy.
Another way to better understand your numbers is to start learning about the area you want to invest in. Different neighborhoods cost different rents and attract different tenants. Free softwares like DealCheck are great for this!
Lastly, it is helpful begin learning about the different types of rental investing. There are significant differences between investing in buy-and-hold properties and wholesaling, for example. Yet, both are considered in the umbrella of rental investing.
Taking your time to learn these details will help you to better create your goals as a rental owner!
Step 3: Determine Your Property Freedom Number
The third step is to determine how many properties you need to achieve freedom!
Most beginners start this way when they create their goals. You must first understand the calculations as mentioned in Step 2 in order to do this!
Reason being, you need to understand how cash flow works with rental properties. If you want a BRRRR property, cash flow will be different than a live-in-flip, for example.
In addition, how much cash flow you can make from a multifamily property differs from single family home. Neighborhoods affect this as well!
So, to achieve freedom you can look at the potential cash flow for a property in an area that you’re considering investing in.
For some people, owning 14 rented units is enough to cover basic living expenses. For others, it may take owning 40 properties to achieve financial independence.
This all depends on your lifestyle! Your freedom number is different than everyone else’s number. However, this is where the fun is with creating your rental property goals!
Some people want to live a lavish lifestyle and others want to simply live below their means for the rest of their lives, but be able to not have to work. Everyone is different.
Spend time to determine what your number will be! From here you can take a step forward to create realistic long-term and short-term goals.
Summary
With your new vivid vision, understanding of rental unit calculations, and determining how cash flow can work, I encourage you to set aside time to create your goals from these exercises.
It is important to create both short-term and long-term goals. You can also create weekly, monthly, or quarterly goals.
Short-term goals can include something simple like finding a real estate agent and a long-term goals can be purchasing a property within a certain timeframe.
Your goals as a rental owner and real estate investing will keep you on track! If you don’t have goals you have nothing to achieve. Make sure to always do as much research as you can to start creating these goals for your real state investments.
Start Your Rental Investing Journey!
Now that you have an idea about how to create goals as a rental owner, follow these steps to stay on track with your new journey!
Get Your Money Figured Out
It is essential to first understand your personal finances before you begin investing in real estate. This is because you are likely to create a business out of your investments and it takes diligent effort to stay on top of your income, expenses, and funds for your properties!
Therefore, if you don’t have a good background already, I always recommend every woman to check out The Woman’s Money Playbook! This jam-packed workbook is a great guide for women to learn about budgeting, emergency funds, investing, and get a good foundation for real estate investing!
Start Your Research
If you have not already started, I suggest everyone who wants to begin rental investing discover how you want to learn! There are blogs such as this one that you are on now, free rental investing courses, books, PDF guides, podcasts, seminars, in-person classes, and tons of videos.
Be sure to take your time and learn all you can. This can take multiple months, and that is normal! You don’t want to rush into this form of investing. And, I never recommend investing in something you don’t understand.
Start Saving Money
Lastly, it never is a bad idea to begin saving up your cash for your first rental investment!
Whether you choose to invest with the BRRRR method, as a buy-and-hold, live-in-flip, or another way, there is always money that needs to be invested with.
Anyone can begin a budget and begin learning! Use your Money Playbook and become a pro with your personal finances. Then, use your new money skills to save up money for your new rental investments!
I cannot tell you how exciting it is to be part of this journey with you, as you begin to grow wealth with real estate investing!
Be sure to join my journey on social media through TikTok, Instagram, and Twitter to keep learning more!
