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On an episode of the podcast “The Side Hustle Show,” hosted by Nick Loper, the real-estate investor Dustin Heiner explained how he was able to retire at 37 by investing in rental properties.
Heiner broke down the steps investors should take before buying a new property and how those rental properties could make them money.
He stressed picking the right city and state, assembling the right team, and the importance of the $250 monthly passive-income benchmark.
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Dustin Heiner is a seasoned real-estate investor who retired at 37 and makes about $15,000 a month in passive income from his rental properties.
On an episode of the podcast “The Side Hustle Show,” hosted by Nick Loper, Heiner explained how he went from working in a local government office to working for himself and laid out the steps investors should take before deciding where to buy property.
In 2006, Heiner bought his first rental property in Ohio for $17,000 in cash. He said on the podcast that in his first month of renting out a home, he made about $350 after expenses. That number would prove significant as Heiner began investing more and more.
To turn the side hustle into a full-time gig, he said, he had to invest in more properties that gave him the same type of monthly cash flow.
“If I were to multiply that out, one property is $300, 10 properties — oh my goodness, that’s $3,000 a month. That is $36,000 a year,” Heiner said.
In 2016, he had about 26 properties, so he quit his day job and focused full time on rental-property investments. He now owns over 30 properties, he said.
Heiner said he was lucky with that first deal he found in Ohio.
“I did everything wrong,” he said. However, over 10 years and many properties later, he has developed a system of steps he suggests everyone take before making a new purchase, he added.
First, pick the state you want to invest in
Once he has decided on the state, Heiner uses Zillow to do research on the cities within that state. He looks at highly populated cities with a lot of available properties, he said. Once he’s narrowed down the city, he looks at all the properties within that city to see if they meet his criteria. This means looking for a property that matches up with the amount of money set aside for the investment and high rental-income rates.
“Here’s a principle for everybody listening: You want to buy for $250 or more in passive income after every single expense,” he said on the podcast.
The next thing to do is build the business
This step requires “finding the right people to actually run the business for us,” Heiner said.
These people include property managers, realtors, wholesalers, investors, insurance experts, and maintenance workers.
The most important hire, according to Heiner, is the property manager. He suggested interviewing at least six property managers before narrowing in on one.
One time, Heiner said, “I flew to Illinois. I went …read more
Source:: Businessinsider – Finance