Wanting to Buy First House to House Hack. 22 Years Old.

[Cole Hagen]

Hello everyone, I am brand new to BP and have been listening to podcasts for a couple weeks now. I am 22 years old and will be graduating college in December this year and plan to work for the same company that I have been with the last two years. Because I have lived at home and have gathered 0 debt I am wanting to buy a house in the next couple months in which I and  two of my friends will live in. I am doing this first because I am ready to move out and secondly because I have always been extremely interested in Real Estate Investing and want to use this property to jump start my portfolio. I am looking for any tips that anyone has for me on:

1. Funding tips (I will have roughly $10,000 to put down, with good credit) and the homes in my area that I am looking at range anywhere from 80,000-250,00. I am concerned about mortgaging too much because I have learned the drastic effective of interest on this sum of money and it hurts my stomach to think I could possible pay 2-3 times the principal on my loan. Is their anyway for me to avoid PMI at 10% or less down and does anyone have any tips on getting a decent loan with 10% or less down, I have only heard negative things about FHA as again the long term effective of paying interest.

2. Payment tips. As their are my friends (both graduating and will have full time jobs, not your typical college party house..), does anyone have any ideas of setting up payment process to ensure that I get paid every month without constantly bugging them at the beginning or end of each month?

I know this is a lot of information but I wanted to give you guys a good description of my scenerio. I am sure I will think of more questions but the funding part is the biggest one right now. Thanks!

[Ibn Abney]

Welcome!!

Great way to get started!! try and go with a duplex or bigger and you will be in good shape. Very first thing is get a job. Banks need to see W2 income. Second, I would look for a location that is the  most attractive. STL isn't far from you or close to the SIEU campus if possible.

Bank of America has a 3.5% down no PMI 30yr fixed loan for 1st time buyers. A lot of good programs out there for 1st time buyers and $10K is a nice amount for a property in IL/MO. Shop around.

If i was you, study and do your homework. Buy something that needs minor cosmetic work and find a way to add value. This way you can refinance in 1-2 years and pull out some equity for the next deal. BRRRRR.

Always think about the next move, before taking a step in any direction!

Good Luck!