My plan from starting out to full time job. Suggestions?!

[Andy Lanser]

Hey everybody. I want to buy my first duplex or 4 plexiglass this year and would like to eventually turn this investing into a full time job. I want to go over my plan and see if anyone has any suggestions about how to start or make the process faster.  I am planning.gonna buying a duplex this year and living in it or renting a separate apartment so I can get the extra income of a second family paying rent.  With my income I make I will save all of it (except some for repair costs of course) and when I have enough saved buy another one.  And keep repeating until I can buy bigger apartments till my income is so that I can do it as a job. Sounds like a simple plan but will take a while to save. Does anyone have any other suggestions for speeding up the process or make it more effective. And or whether I should live in or rent out my first rental home or get the extra renter? Again my goal is to grow my portfolio the fastest way possible. Thanks again for the help. 

[Conor Hesch]

Hey @Andy Lanser I live in Minneapolis MN and am doing the same thing.  I bought a duplex: 3.125% interest rate 30yr fixed, no mortgage insurance with 3% down.  Total payment is 1,480 but the lower level pays me 1200 rent.  So I live in the upper level for $280 a month.  If I were to get a roommate (aka House Hacking) they would pay 400 for the other bedroom and thus I would live for free)...here is how I am doing it (its all in how you start) and if you don't already own a home then I would suggest you do the same thing I am doing as follows  (you can always message me for the exact details):

1. Buy a Duplex. Use the loan that I just used to buy my first duplex: Portfolio Conventional Loan, 3% Down Payment, No Mortgage Insurance (yes this loan really exists). This will make your monthly payment way lower than an FHA Loan. The only loan other than this that I know of that would allow less down payment would be a Veteran Loan (Vets only). Be alert, if you time it right you might be able to get down payment assistance/grants (I got $5,000 from a local program and used it to buy my interest rate down to 3.125% which is way below typical market rates for a Duplex). There are also many down payment grants for first time home buyers.
2. Don't start with an FHA Loan, instead use it for your 2nd Duplex...because the 3% down Portfolio Conventional loan that I used requires that you do not own any other homes at time of closing. So start with that then move to a 3.5% down FHA. Once you have an FHA loan you are not allowed to have another FHA loan unless relocating a great distance for work.
3. Now that you have exhausted your Low Down Payment Options (Portfolio Conventional and FHA Conventional and FHA) you will need to use a Standard Conventional Loan and put 20% down to get your 3rd Duplex.
4. The sky is the limit...you could continue to buy properties and build an empire or just stop there and enjoy more free time...I have friend who quit his job and just manages his properties now.

Keep in mind that this 4 step process I outlined takes time (anywhere from 1 to 10yrs depending on the person) so keep the big picture in mind but don't let it stress you out too much. Send me a message if you have any more questions and keep us posted on your success! GOOD LUCK !