New to REI - Where to begin?

[Aaron Phillips]

Good afternoon, BP Community!

Giving a brief background on myself - I am married with 2 kids living in Northern Kentucky close to Cincinnati, OH. I currently work for a Customs Brokerage and actively studying for the Customs Broker Licenses to increase my career potential.

I've been a member of BiggerPockets for several years learning everything from Wholesaling (Which rendered no success mainly because I didn't want to broker properties with no brokers licenses) to the BRRRR strategy. One of my dreams has been to be actively involved in Real Estate investing since I was a little kid. I believe I was 15 around the time I joined BiggerPockets. My problem is I have never gotten my feet wet and at this stage in my life I'm ready to dive in and hope for the best. I'd just prefer it to be a calculated dive.

I’d like to think I’m smart with managing my own money. I manage my personal finances well and do a good job with saving. I’ve built a nest egg of $100K in cash over the years through working and side incomes.

I have a pre-approval for $300K with my current bank via an FHA loan, I've been very vocal with my lender about wanting to do what's best for my future endeavors with REI, and am looking for almost a roadmap to be painted for me to ensure I am making all of the right moves to maximize my earning potential.

My lender suggested that I purchase a primary residence for myself (I currently rent) and then turn around and purchase an investment property with 20% down - show that I can be a successful landlord for a year and then the gates of opportunity will swing open.

As I stated in this post I’d like to do whatever it takes to maximize my earning potential and I believe I am in a decent market to do so.

Also worth mentioning my wife is an RN, making great money, in school pursuing a career as a Nurse Practitioner. If it makes the most sense - we talked about getting separate loans to stretch what we’ve saved up and get the most for what we have. She is not on my current pre approval so there is no financial obligation to her.

All of the tips, tricks, and guidance is welcomed!

[James Wilcox]

@Aaron Phillips It's fantastic to see your progress as a real estate investor! I commend you for your financial acumen and recognizing the significance of working toward financial independence. Taking care of your own living situation should indeed be a priority, and I encourage you to explore the possibility of pursuing both goals simultaneously. One approach you could consider is "house hacking," where you find a property that allows you to generate additional income while covering your own living expenses. Look for smaller multi-family homes or single-family homes with a suitable layout that would enable you to either rent out a room or have roommates. While living near your tenants or guests may not be your ideal scenario, it could be a temporary sacrifice that propels your investing goals. In my opinion, it's one of the best strategies to begin your real estate investment journey. Once you've established this arrangement, you can repeat the process or search for another investment property. Additionally, exploring creative ways to leverage your cash, even if it means accepting a higher interest rate, could be worth considering. Just remember to use loans wisely and make informed decisions. Keep up the great work and GL in all your future REI ventures.