If we believe statistics are important then RE investing will rarely produce current cash flow when getting started. It is much more likely that a new job will solve that issue.
Understand that you are talking about starting a business as a RE investor with little prior experience and you want to replace what was your income. Most businesses struggle when they start and RE is not that different.
A few folks will have done well right from the start. Call it luck or call it cross over from a prior profession.
Expect that lenders will be happier if you have a W2 income in the same field that you were in before. Neither right or wrong. Just how lender’s score people.
Is it better to concentrate on quick flips (assignment and/or easy rehabs) or terms deals geared towards picking up lease option properties to build a portfolio?
What is your view on unexpected expenses and cash flow? Can you handle vacancies, repairs that are not paid for by the tenant and other running costs?
Do you have much time? If you do flips you are somewhat creating a second job in that you have to keep finding more deals?
How is your credit? People who have credit issues normally can fix the issues quickly if they pick up lump sums of money and then let time pass after settling the problem accounts. Time is needed but cash comes first as it is time after you have sorted things.
Both strategies work and both could be fine. It really depends on your starting point.
I would concentrate on ways to build up some cash reserves before building up a portfolio that you would ultimately be responsible for if tenants/buyers stopped paying the bill. Then work on building up your portfolio once you know you can handle any financial problems that may, and will, come along.
Do you want to go FT, or just add income to your FT job, maybe retire a few years early? Flips and rehabs give chunks of cash that can easily replace a FT income however a few L/o here and there are a great supplament
Since I was recently laid off, I need some substantial income quickly but would like to transition into more of a residual income strategy after getting my feet back on the ground.
Since I lost my job (corporate downsizing), I am looking to start this as a career. I need income starting out to pay bills, but I want to build to regular income.