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Updated over 6 years ago, 07/18/2018
First property advice
Hey guys, I am starting to realize that as comfortable as I am financially with renting month-to-month a nice apartmentI truly may be wasting an opportunity to financially growfurther.
With that being said, someone who is of age 22. Would the best way jumping into real-estate onthe side be starting with a duplex? Or a cheaper house. Keep in mind, I will need a place to stay so I technically could get two houses but that just sound so overwhelming at the moment...(even though that basically is what a duplex is..lol) I am based out of Kansas City where I believe there is good room for me to start my journey.
I will take any advice/criticism as I am all new to this and appreciate any responses.
I have was about your age when I bought my first sfh and now own 2 duplexes and 2 sfhs (one of which I live). I also have a business in that commands a lot of time from me. I wish I had bought more duplexes over the last 15 years as I am now 38. I just bought my last duplex about 2 months ago and am looking for other now.
Go for it and don’t stop. I wish i would have stuck with more real estate instead poring my time into my business. I now have 4 kids and overwork myself. I am trying to buy more cash flowing realest are now to have more time with them and get my life back.
Good luck .
Originally posted by @Ryan Kinley:
I have was about your age when I bought my first sfh and now own 2 duplexes and 2 sfhs (one of which I live). I also have a business in that commands a lot of time from me. I wish I had bought more duplexes over the last 15 years as I am now 38. I just bought my last duplex about 2 months ago and am looking for other now.
Go for it and don’t stop. I wish i would have stuck with more real estate instead poring my time into my business. I now have 4 kids and overwork myself. I am trying to buy more cash flowing realest are now to have more time with them and get my life back.
Good luck .
Much appreciated Ryan, and I wish you the best on finding your next duplex.
#3 Investor Mindset Contributor
- Handyman
- Pittsburgh, PA
Hi Arthur, I have no experience in financing a first property. There are lots of investors on Bigger Pockets who can give you advice on that. I believe you can get an first-time homebuyer Federal Housing Administration loan with very little money as a down payment. Many BP pundits will tell you, however, that this is not always a good idea. I really know very little about financing, however.
As far as the ideal price for a duplex...that depends. The best-priced duplex is the one that makes the most money for you. It may not necessarily be the cheapest, and it will almost certainly not be the prettiest. There is a lot of information on BP about running the numbers on possible acquisitions.
My advice is to dive into the wealth of information in the Videos section of this website.
Originally posted by @Jim K.:
Hi Arthur, I have no experience in financing a first property. There are lots of investors on Bigger Pockets who can give you advice on that. I believe you can get an first-time homebuyer Federal Housing Administration loan with very little money as a down payment. Many BP pundits will tell you, however, that this is not always a good idea. I really know very little about financing, however.
As far as the ideal price for a duplex...that depends. The best-priced duplex is the one that makes the most money for you. It may not necessarily be the cheapest, and it will almost certainly not be the prettiest. There is a lot of information on BP about running the numbers on possible acquisitions.
My advice is to dive into the wealth of information in the Videos section of this website.
I am trying to gain more, and more knowledge and luckily my off-days just started so I will probably be on this site every second I am up for the next two days digging in deep and taking notes. Thanks for the response, I am comfortable putting a decent down payment down but I still want a good amount of cash to wiggle with for any unexpected things / upgrades before going on the market.
Thanks again!
Dig into and set keyword alerts for “house hacking”. BP has a few podcasts about it, with this being the most recent: https://www.biggerpockets.com/renewsblog/biggerpockets-podcast-252-house-hacking-your-deal-life-hacking-craig-curelop/
Unable to use it now, but from what I understand an FHA loan can be used up to a 4-plex as long as you intend to live in it. Use the other units rent to pay for yours and get a feel to see if this is something you really want. When you’re ready to invest again, you’ll have a good idea of what you like/don’t like and can apply an experienced strategy at that time.
Originally posted by @Aaron Winters:
Dig into and set keyword alerts for “house hacking”. BP has a few podcasts about it, with this being the most recent: https://www.biggerpockets.com/renewsblog/biggerpockets-podcast-252-house-hacking-your-deal-life-hacking-craig-curelop/
Unable to use it now, but from what I understand an FHA loan can be used up to a 4-plex as long as you intend to live in it. Use the other units rent to pay for yours and get a feel to see if this is something you really want. When you're ready to invest again, you'll have a good idea of what you like/don't like and can apply an experienced strategy at that time.
I will for sure be digging deep into anything and everything with the word "house hacking" in it! Say worst case scenario its just not for me is much value lost when you decide to sell off? Or in general... If you want to move on from a property does it depreciate value since it was "rented". With an FHA I believe you just have to live in it for a year!(I think)
Good morning, giving this thread a quick bump as I am trying to engage in more feedback!
Thanks,
@Arthur Soto I bought my first SFH at 22. Don't be gun shy. If I was to do it again I would have definitely bought a duplex at a minimum if not a tri or fourplex. Multi-family will pay your PITI, repairs, cap x, and might even give you some cash flow while you are still living there.