4 Real Estate Strategies For Early Retirement As A Medical Professional
For medical professionals, investing in real estate can be a good way to achieve financial freedom early on in their careers, setting them up for not only a comfortable retirement but an early retirement.
Real estate is an asset that can serve as passive income, and that's why investing in it is one of the best ways to amass wealth while still having time for your career and growing family.
Real estate investments are passive, meaning that the money you earn comes in without having to work for it. This can be very helpful when traveling, working in the often hectic medical setting, or enjoying your retirement since your investment will continue generating income for you even if you aren't physically there.
In this article, we will discuss four various real estate strategies you can use if you want to retire earlier than expected as a medical professional:
Investing in short-term rentals
Joining a real estate syndicate or crowdfunding program
Purchasing properties geared toward long-term rentals
Strategy 1: Investing in Flip Properties
If you're looking for a way to invest in real estate and still keep your day job as a physician or other medical professional, flipping properties might be the answer and one of the best real estate investments you could make.
Flip properties are just what they sound like: homes that are bought, fixed up and then sold for a profit. This can be a great way to start real estate investing if you have the time and skills (or know someone who does) needed to do the work yourself. After all is said and done, many house flippers even report earning around 10-20% as a return on their initial investment.
Flipping houses isn't something everyone has an interest in doing, but if you like taking on DIY projects or want more control over how much money goes into each property before it's sold, then flipping may be right up your alley!
Strategy 2: Investing in Short-Term Rental Properties
As a medical professional looking to retire early, you can also invest in short-term rental properties as part of your retirement-friendly real estate investment strategy.
A short-term rental investment property or properties are great for people who want to get started investing but don't have much capital to invest, setting them up for the financial independence to retire early.
Short-term rentals have become very popular over the last few years, especially with sites like Airbnb and VRBO, making it easy for people to find places to stay when they travel. The market is hot in many cities for buying rental property, so there are plenty of opportunities if you do your research!
Strategy 3: Investing in a Real Estate Syndicate
A real estate syndicate is a group of individuals who pool their money to purchase property. A single investor or multiple investors can form a real estate syndicate. They will have one or more general partners (GP) who manage the investment and are responsible for executing all decisions, including finding properties and managing tenants.
Risks associated with investing in a real estate syndicate include:
The GP may need to gain experience managing properties or tenants; this could lead to poor performance or legal issues down the line.
If you're considering forming your own syndicate, make sure you have enough capital available so you don't run into cash flow issues when it comes time for payments on your first few properties.
Not having a solid real estate investment strategy.
Strategy 4: Investing a Property Geared Towards Long-Term Rentals
The fourth strategy is to invest in a property that is geared towards long-term rentals. This means investing in an apartment building, which has been proven over time to be more profitable than single-family homes. This is because you can charge more rent per month and have less vacancy risk since your tenants are guaranteed by their leases to pay each month.
A good way of doing this would be finding a duplex or fourplex within walking distance from public transportation like buses or trains and then renting it out through a property maintenance company or on your own using a site like Craigslist. Investing in long-term rental properties is an excellent way for medical professionals to retire early through real estate investments.
For a detailed example of what you could expect for an ROI on a long-term rental property, check out this article.
Why Medical Professionals Should Consider Investing in Real Estate
As a medical professional, you know that real estate can be an excellent investment. It offers passive income and allows you to have time for other things, and investing in real estate can also be done while working. Your medical career will last for decades, but that doesn't mean you have to be tied down by it forever. If you want to retire early and live your best life now, investing in real estate can be one of your best strategies.
In fact, if you're looking for ways to increase your income without having to work more hours (or at all), then this could be just what you need!
Real estate investments are passive income - meaning they provide regular income without requiring much work on your part beyond collecting rent checks or selling properties when the time comes.
The problem with real estate is that it can be very expensive to get started. It's not like buying a stock or ETF where you can buy 100 shares for $500 and start making money immediately. To make any decent money from real estate, you have to invest at least several thousand to hundreds of thousands of dollars—and even then, it might take years before your investment generates enough passive income to pay for itself. However, this type of investment does require some additional research and planning.
If you want to retire early with real estate, these four strategies should be something you consider. Real estate is a great way to diversify your portfolio and add high-quality assets that provide passive income, which will help you reach financial independence faster than any other strategy allowing you, a medical professional, to not only retire on time but early if you'd like!
David Price MD is the Founder and CEO of getFREED, a business providing real estate education and vetting of individual deals to help physicians and other healthcare professionals build a passive stream of income, allowing them to work less and practice on their terms.
David lives with his wife and two daughters in Atlanta, GA, USA.
To find out more about David and getFREED, head to http://www.get-freed.com.