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Hi everyone!
My name is Joy I'm a mom of 2 little ones, I owm my primary residency currently (FHA 5.75%). In the past two years of owning it, my house has gone from $304k to $360k-ish. I'm starting to learn it all as far as equity, house hacking... all of it. I have limited cash in hand that I'm able to invest...I'm not sure that the current equity in my house is enough either to use it for future investments. I'm an engineer and even then, I'm getting really tired of feeling like life is a paycheck-to-paycheck situation even being an engineer...
I know there's not an ultimate answer, but what would be your way of getting started with real estate investing in my position? I've been hearing about airbnb on rentals, is airbnb still worth looking into now a day?
Unfortunately having two little ones some of the house hacking for us would not work (I know it's a broad term and there's much that can be done under that). But wanted some word of advice on what would be best to get started? I love the idea of getting into flips. airbnb..
I appreciate any word of advice.
Thanks!
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That isn't enough equity to move the needle now and since you are on a 5.75% FHA, your payments are probably still pretty high comparatively which might cut the ability to save more. The short is, you shouldn't be looking to invest right now, you should be looking to learn and connect with other local investors.
You have home ownership under your belt, so you want to build on that. Find local meetups and get connected with others who want to think long-term on their investing.
We have a meetup starting in Lakeland in the second week of May, it's in the events here. That would be a great place to start. No pitches, only networking.
Hi Jonathan,
I figured it’s a given that I am here to learn. I imagined this place is for people to share knowledge and connect and that is what I attempted to do so. I’m aware I don’t have enough equity built up already as well. I don’t think that means there’s nothing out there for people like me.
I’ve done some research on Arbitrage, house hacking, co-hosting.. etc. I wanted to know peoples opinion on it in started some low up front cash “ investment” which I’m also aware that’s not true real estate investing for some of those. But at times can be a good place to start to build up a portfolio and future cash for investment instead of waiting for your equity or the world to decide we can have low interest rates… which sounds like that’s what you are suggesting for me to do.
Honestly, the short answer is that you need cash to make cash. I suggest partnering with an equity investor on your next deal and making the numbers work that way. Most investor loans require a minimum of 20% down for rentals and 15-20% down for flips, especially if you are a first-time investor. You will also need liquid asset reserves to get financing on a deal. It depends on the product, most it can range from 3-6 months of PITIA.
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