How to Invest in Real Estate at 22??

Question

Should I get my real estate license first?

James Masotti · Answer

@Nakisha Henderson - Memphis is a great market to be in for a newbie real estate investor. Spend a bit of time educating yourself and then look for the opportunity to house hack and 1031 yourself into bigger and better properties in Memphis. There are some folks doing really great stuff in Memphis here on BP, so track them down (virtually here on BP that is) Read all their forum and blog posts, and engage them in meaningful conversation...you'll be able to learn a lot and help their business grow if you're able to do this.

Tina Sandoval · Answer

@Nakisha Henderson Welcome to BP! If you need any advice or help to get started I would be happy to help. There are several classes and groups available for new investors just like yourself! PM me and I will be happy to provide you with a list.

Regina Sitterley · Answer

Hi @Nakisha Henderson!  I bought my first investment property when I was 22.  It was a duplex.  I lived in one half and fixed up the other half, then rented it to tenants.  Their rent exceeded the mortgage payment, plus the taxes and insurance.  It's a great way to get some experience under your belt!

Chris Harkins · Answer

Hey @Nakisha Henderson, in my opinion the best thing you can do to get started is to buy your own house and rent out bedrooms. That should eliminate your housing expense, utilities, and may even let you pocket some money too each month. That will start to give you the basics of property management skills as you learn to manage your roommates.

Check out the Memphis REIA meetings. http://www.memphisinvestorsgroup.com

Account Closed · Answer

First, I would get my own financial house in order with a budget and no debt.  Then I would save up a down payment to buy a duplex.  I would live in one side and rent out the other.  If you live in a touristy area, I would actually use the other side as an Airbnb.  Attend your local REI meetings and network with other landlords, volunteer to help them out if you have the time in order to learn from them, find a mentor or two who is ahead of where you are to ask questions and drive for dollars to assign properties to investors.

Robert Adams · Answer

This comment may be true in your market but as we all know local markets can vary greatly. In Vegas for example this comment would not hold true. It is much more expensive to rent than it is to own your own  home. Not only is monthly rent higher than a mortgage payment but you also do not get the tax write offs, any appreciation, and you also have the potential to lock in better owner occupant financing terms which you can keep even if you decide to move out later and make that property a rental. The financing terms alone can save you a tremendous amount of money as the interest rates are much lower and down payment requirements are much lower on owner occupied homes.

Another option would be to get owner occupied financing on a 4 or less units (as over 4 units will be considered commercial and will be subject to a different set of rules). Then you can live in one of the units while renting the other units out. Eventually if you wanted to move out you could keep the same financing in place and rent your unit out as well. If you go over 4 units the commercial financing terms will kick in and you will have to put down quite a bit more.

I bought my first property when I was 21. Here is info and pics about my first RE purchase.

Reese Thompson · Answer

@Nakisha Henderson

The biggest help I've found is to listen to the podcasts everywhere you go.  And once you've listened to them all, listen again because you'll find things you didn't catch the first time.

Lawrence L. · Answer

@Nakisha Henderson Welcome to BP....There have been a lot of wonderful suggestions given....

But most of all take them use them and get started...good luck on your journey.

Robert Adams · Answer

The contractor I used was a friend of mine. We walked the property together while I had it in escrow. I used those estimates before making a final decision to purchase it.

Nakisha Henderson · Answer

@Robert Adams thanks for providing the info about your first sale. How did you come about making an estimate for the rehab at such a young age?

How to Invest in Real Estate at 22??

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