A 20 year olds path to rentals

[Alex Austin]

Hi I'm Alex and I'm new here. ✋🏻 I have no money but I plan to figure out how to leverage my way into a duplex that I can live in and rent out the other side to help cover the mortgage. Super excited and any tips would be much appreciated! Thanks!

[Jeff F.]

hi @Alex Austin

I live just up the road in cheyenne. I know loveland/foco real estate is pretty hot right now, so here's what I'd do if I were you:

get a bike and stop wasting money on gas and a car if possible. loveland is pretty bikeable and it's summer. You should be ok for the next 4 months. 

start cooking all your own meals. Get a crock pot. stop going out. set a weekly budget for all non essential expenses of $20. 

Ask yourself every time you buy something - anything - would you rather have what you're about to buy or a duplex? those movie tickets are fun, but which would you rather have. you're here on BP, so I suggest you know the answer, but now you have to live the life, not just talk it. 

Get a second job, save ALL earnings for a RE purchase.

Use FHA loan. You can get 3.5% down. You'll need 8750 + closing and other costs on a 250k property. You'll have to pay PMI, but 9k isnt a whole lot of cash.

you should be able to get that saved up between your two jobs.