Just turned 18

[Elijah Rotenberger]

I just recently turned 18, and was wondering if I could get some advice on the best way to begin investing in rental properties. Here are a few of my questions:

- How much money should I save up before starting to invest in properties

- Is there a market that would be best for someone such as myself, or is it just personal preference

- Do I need to hire people such as agents, contractors, property managers, etc. or will that all be later on once i build up my portfolio

- When is the best time to begin purchasing?

- What should the desirable mortgage/rent ratio be for my properties

- Should I begin saving up an emergency fund for repairs and maintenance before I actually purchase a property or should I begin doing that once I own a property

- Do you think Louisville, KY would be a good location to stick with, or should I look for a new area

Thanks in advance for your suggestions!

[James Wilcox]

Quote from @Elijah Rotenberger:

I just recently turned 18, and was wondering if I could get some advice on the best way to begin investing in rental properties. Here are a few of my questions:

- How much money should I save up before starting to invest in properties

- Is there a market that would be best for someone such as myself, or is it just personal preference

- Do I need to hire people such as agents, contractors, property managers, etc. or will that all be later on once i build up my portfolio

- When is the best time to begin purchasing?

- What should the desirable mortgage/rent ratio be for my properties

- Should I begin saving up an emergency fund for repairs and maintenance before I actually purchase a property or should I begin doing that once I own a property

- Do you think Louisville, KY would be a good location to stick with, or should I look for a new area

Thanks in advance for your suggestions!

@Elijah Rotenberger Hey there, it's awesome to encounter another Kentuckian on BP! Even better to see someone keen on diving into investing early on. Time will definitely work in your favor. I wish I had BP at my disposal when I was 18! Here are my responses to your questions from the Bluegrass State perspective.

1.) This depends on what model that you go down. Of course, the more the better off you will be. IK that sounds like a cope out answer but saving is part of the journey of REI. Start that now and do as much as you can. Always have the nest egg growing and ready.
2.) The "best" market is your own backyard or the one you can build the best team in. Invest where you have the most market knowledge or where you can rely on quality team members to inform you properly.
3.) Always hire professionals. However, you can fill in that team as needed along the journey. I would start with a good lender and agent though and go from there. If you want any help in that department you can DM me. ;)
4.) Time is your friend but as soon as you can.
5.) Depends on the model you go with and the quality of the asset. Some people have used the 1% rule in the past for long term rentals. This is a case by case so set your own metrics and try to find properties that meet your own standards.
6.) Yes.
7.) It can be if that is what you know and can find good team members in.

You should be engaging an lender now to get a pre-approval. Also, start by assessing your own living arrangements. Are you currently renting or do you own a home that serves as your primary residence? If you're renting, it's time to explore house hacking as a strategy. And if you already own, consider implementing house hacking techniques. Begin with this foundational step, and the rest will naturally align.