Did I already mess up?

[Mike Staehle]

So I have been following biggerpockets (forum,podcast,youtube, everything) for about two years now and I've always had the goal in mind to start investing in real estate. I bought a single family house as a permanent residence in CT not even thinking about the long term goal but to solve a short term problem (living with my parents at age 24 and needed out). I bought this house with a USDA loan which is 0% down, it was a HUD home that I paid 142k for and it appraised at 162k. I've put about 10k or so into it so far and i have a roommate moving in with me in november who will be renting the downstairs (bedroom, den, bathroom) for $750 a month. Thinking about the long term goal I really would like to buy a rental property whether it be a duplex, tri, quad. I'm not up to par 100% with everything I've learned because i haven't actually put it to use yet but what would be my best way to buy another property? I don't have a ton in savings anymore from buying my first house because of all the inspections and work i put into it. Any help is greatly appreciated!

[Karen Rittenhouse]

Hi @Mike Staehle! You certainly haven't messed up. Yes, you may need to focus some on saving, but you're on the right long term path for wealth at a very young age.

First, be sure to attend all your local real estate investor groups - REIA meetings, meetup.com meetings, landlord meetings, etc. to learn from those in your area doing what you want to do.

Then, the least expensive loans you'll find to purchase a property long term is through a bank or credit union. Most allow at least 7 loans in your name as long as your credit and debt-to-income ratio allow it. I suggest you go talk to some banks and credit unions in your area to find out their criteria. They will look at your credit and tell you exactly what you need to do to qualify.

There are creative buying strategies like owner finance that you can learn, but most of the creative ways take some experience and skill. Get together with those in your area familiar with investing and work with them to learn.

Keep up the good work!