Flipper/Rehabber · Raleigh, NC · Member since 2015 · 36 posts · 8 votes
Hello everyone! I am brand new to BP and trying to get my REI career off the ground.
I have been educating myself on REI by reading books, listening and now I am part of BP. I am just out of college in the last few years with student debt of over 50K. I pay about $1000/ month, twice my minimum payment. I have a credit score over 730, pay all credit cards off in full each month and make a pretty good salary for mid twenties.
I am seeking some advice from fellow investors on best options to get started. I live in southern NH and as you may know this area is not the cheapest area to buy in. I am considering buying a multi-family to live in one unit and rent out the others. Any other recommendations to get started? I am a tad bit hesitant to take out a loan/mortgage to buy my first property with my student debt. Though, I do believe I have a very good handle on my personal finances and could manage.
Just my opinion, but if I was starting over and in your position I would pay the minimum on my Student loans. Unless things have changed they are usually low interest loans. I'd put that $6000 extra your sending them per year into down payments, and fix-up costs. If you can get a mortgage on a 2-4 family then you can get another property sooner that way. I know that's the boring, slow way to do REI, but your young.
With limited knowledge of your financial situation, to give you a dead on correct answer.
I will say you have the right thinking, buy, live in and rent other spaces, Use that cash flow to pay down your school debt. Oh and make sure your paying your own rent to yourself. Lots of folks don't do this.
Just my opinion, but if I was starting over and in your position I would pay the minimum on my Student loans. Unless things have changed they are usually low interest loans. I'd put that $6000 extra your sending them per year into down payments, and fix-up costs. If you can get a mortgage on a 2-4 family then you can get another property sooner that way. I know that's the boring, slow way to do REI, but your young.
I like your idea @Joshua Frahm ! A reasonable 2-4 family that you occupy is a great strategy. The good news is, your renter is right next to you and you can keep an eye on them. The bad news is, your renter is right next to you! Have clear boundaries with them. "No, I will not change your light bulb for you at 10:00 at night." Oh - yes, punch that student loan debt in the nose like you have been. It never goes away unless you are deliberately paying extra against it. It's not bankruptable and only goes away if you pay it off, become permanently disabled or you die. Welcome to the site!
@Joshua Frahm starting out with a primary residence multi-family property is a great way to get started! You can get into a property with a low down payment. It is great that you are building up your credit and paying off your credit cards at the end of the month.