Investment path advice for 24 year old investor.

[Account Closed]

Hi Everyone,

My mother has been investing in real estate for the past 10 years and I have helped her along the way with basic work. I never looked at it as a career path until I recently came across a video of Brandon Turner's and it inspired me to begin investing.

As of now I have one property which will be finished within a week. It is paid off and has a value of roughly $90,000. I have a tenant moving in January 1st and will be making $900 a month in cash flow from the property.

What should my plan be to expand my portfolio at this point? As of now I think it would be best to refinance my property and use that money to acquire another house and pay for repairs. Is that a bad idea?

My long term goal is to hit a net worth of $1 million by 30, and have around 10 properties. I think that is very achievable for a 6 year plan.

Thank You,

Kyle

[Ed Wood]

After doing 1-4 unit mortgages for all types of borrowers for the last 12 year I've learned a lot from these investors. Not one of them has ever said it was a bad decision buying their property I would say all of them would probably say it was the best thing they've ever done.

Here's my plan take from it what you will (I wish my parents knew enough to do this).

I have two kids and soon as they turn 18 I will have them buy a 4-unit using FHA 3.5% down and a blood relative (me) as a non-occupying co-borrower and source for down payment. FHA you can use 85% of the rental income to qualify too so I may not need to be on the loan. When the property appreciates enough to pull cash out I will have them pull cash out for a 25% down payment on another 4-unit property. Continue this cycle until 4 properties are owned and financed. Then from 5-10 properties the down-payment will need to come from other sources or obtain seconds because you can not leverage by doing cash-out refinances with more than 4 properties owned and financed.

*As a side note, at any age if someone is living in an apartment with the FHA opportunity you might as well go out and by a 4-unit because on FHA loans they let you use the rents as income to qualify, this has to be one of the greatest opportunities allowed by FHA or any other loan program.