Aspiring St George Investor

[Jaxx Baxter]

Hi I'm new to the real estate game but I'm super excited to get into it. I've got 20-25k to put down on a property and would really like to get into a duplex or something very similar to that. I'm 21 years old and actually still live with my parents so I don't have to worry about paying rent at the moment so I'd love to buy a property and rent it for 1-2 years and then move into half of it from there. The only issue is there's no multi family's available in southern Utah. I have thought about getting a list of local owners from the county clerks office but would it be more effective to just buy out of state where there are already properties available? then when I'm ready to move out in 1-2 years I could buy another property and just continue to rent the duplex?  Alternatively I could buy a single family, I'm just not sure that rent is high enough in my are to cashflow day one given how expensive southern Utah is. Any advice would be awesome, thanks! 

[Jeff Roth]

Hi Jaxx-

Congratulations on starting your real estate investing journey.

I would recommend buying near where you live to start out for many reasons most of them you can probably come up with on your own.

That being said, if what you are saying is true about your area, I would look to house hack to get started.

This would be you buying a single family home that has a separate entrance to the basement where you can turn the basement into an apartment and also rent out the other rooms. 

Think about buying near a hospital or college where you could attract short and mid-term stays more than just in a typical neighborhood.

Before buying anything, I would find the best property manager in the area and tell them what you are looking to do then ask if any property they manage is like that and if the owner would consider selling to you. If not, ask for a referral to a Realtor the property manager recommends and have the Realtor find you a property that fits your house hacking criteria. Before buying, you should have the property manager weigh in on market rents so you know the numbers will work from day one renting by the room and/or the basement having them manage the tenants for you. 

Starting off using a property manager while you house hack will allow you to make your investment more passive while learning to work with a property manager and the local leasing requirements. They will also help you keep your rental compliant. You can act like you are just another tenant in the house.

To your success!