Where to begin

Question

First off, Hello everyone my name is Reed and this is my first time starting a discussion.

I'm posting here in the Starting Out category because I need some suggestions on where to begin with real estate.

Here is some relevant information regarding my current situation:

I'm 23 years old with one year until I graduate college. I've lived in Las Vegas for 3 years and I've worked some part time jobs, now working full time for a vacation home rental company (Since April).

I'm independent, no debt, no student loans, very low tuition (with financial aid grants), rent of $500 per month, credit score above 750 and a small chunk of change saved up in the amount of $15,000.

I'm ready to invest time, money and hard work... but Where? and How?

My current thoughts are:

I really want to flip houses and would love to get involved in that.

I've wanted to buy my first house for years now but knew I wouldn't get a mortgage loan (because of spotty work history through college). I should qualify for a mortgage loan next year and if I bought a home I would be willing to house hack for a little bit. Or rent out the home as a vacation rental while staying in my current house.

I'm very interested in hearing what anyone might do if they were in my shoes.

I know everyone starts out under different circumstances and compared to a lot of success stories I'm in a great position to start off. So please give me some feedback as to what my first steps could be towards a successful journey in real estate investing.

Thanks!

Reed

Sean Lauber · Answer

I second house hacking! Get someone else to pay your mortgage and then some! Put together a plan for your future and what you hope to get out of this investment. I really recommend reading the Ultimate Beginner's Guide (https://www.biggerpockets.com/real-estate-investing) to give yourself some perspective. good luck!!

Account Closed · Answer

Hi Reed!

I agree with Sean and feel that house hacking is a good way for you start! I am new to real estate as well And I just read the Ultimates Beginners Guide and love it because it listed all the different options and ways to invest in real estate and gave me a good overview of the industry. I feel that once you read the guide you"ll at least have a better idea of where you would like to start! Although as someone new to real estate You should look into house hacking because it's a great way to give you hands on experience of the industry and living for free is a big plus.

Account Closed · Answer

Hi Reed, Welcome. I am new myself and while I agree that House Hacking is a great place to start and is where I am looking, could I offer up the suggestion of Wholesaling? What are your plans exiting college? I'm 28 but if I knew about REI before hand I may have thought about taking a year or two to jump in while I don't have much to lose being so young, and trying my hand at full-time networking and finding great deals and a mentor!

Just a thought but most importantly all strategies have the POTENTIAL to work, just plan your work then work your plan. All the best, please let me know how your REI is progressing!

-Zac

Reed Huddleston · Answer

Hey Zach,

Thanks for the reply. After college I might continue with the vacation home company I am currently at or try to get into accounting. I'm a hospitality management major with a minor in accounting but I definitely don't want to become a hotel manager working 50 hour weeks only to cap out at a $44,000 salary each year...

I'd like to get into flipping houses and make a business out of it with my accounting knowledge.

I know the idea of wholesaling sounds like a great way to get involved without a lot of risk but I'm not a salesperson and I'm definitely not interested in networking like my life depends on it. I'd rather put in the work behind the scenes crunching numbers or finding the best ways to set up a deal.

Reed Huddleston · Answer

Thanks for the feedback so far, it does seems like a good idea to house hack while I'm still young. I have read the beginner's guide already and that definitely did give me a good perspective on what to do.

I also got a copy of Brandon Turner's Investing with no and low money down and that has been somewhat helpful but I'm still trying to find out the best way to finance my first home purchase...

Curt Davis · Answer

Focus on finishing college and saving your money.

House hacking might be a good place to start as it will provide you the least total out of pocket.

Good luck

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