Newbie to Rental Property Investing

[Nicholas Blaylock]

Hello,

My name is Nicholas Blaylock, and I’m looking to get a better insight on what steps I need to do to become a successful rental property invester. I’m currently active and deployed with the United States Army, and prepared to take my jump into real estate when I get back. At the moment I have $7,000 saved, and no knowledgeable on what I need to do. I’m currently reading BiggerPockets “The Book on Rental Property” by Brandon Turner, and it’s been very insightful. Any information and help would dearly be appreciated.

[Jeff Mauerman]

@Nicholas Blaylock,

When you say “get back,” does that mean you are completing your service with the army and will not be deployed again?

If that is the case, I would encourage you to read up on everything in the forums about house hacking. With $7000, you could probably get into a livable small multi family property using a 3 1/2% down owner occupied loan. By living in one of the units and renting out the other(s) you can pay for most or all your living expenses and bank what you would normally be paying in rent. Save this money and figure out your strategy to invest in future properties. This can be a great jumping off point.

If you are still active with the military and are likely to be deployed again, I would recommend continuing to save cash. Most non-owner occupied loans start at 15% down, although I have heard of banks that will do 10% down, but they are rare. Assuming a 15% down payment, you’ll be looking at a house that costs about $45,000. That does not take into account any purchasing costs such as loan fees or potential renovations. Depending on your market, this may or may not be a price range that works for viability and cash flow.

There is also a lot in the forums and the podcast about wholesaling, which requires much less of your own money and more of your time and energy.

My final thought is listen to all the bigger pockets podcasts you can squeeze into your day. They are a wealth of information and various strategies, many of which are geared toward people starting out.

Good luck!