First Post, Is 10,000 enough to get started?

Question

Hello, I am new here.

Currently I live in Japan teaching English, however I decided to move back to Florida in about 1 year from now. I realize here that creating passive income here through real estate is pretty much impossible since you have to be a citizen to even own a house. Not to mention the houses built here only last 30 years.

Anywho my plan is to put roughly $1000 aside each month so I would have around $10,000 when I return to Florida. I don't really know what to do from there. I would like to buy a place to live in so I am considering house hacking. However on zillow there doesn't seem to be any tri-plexes in my area at the moment so maybe a duplex would work.

I literally have no clue what I am doing. During this year I plan to start reading real estate books and listen to podcasts to build knowledge. If you had the 10k how would you spend it? My goal is to build rental properties and eventually have someone watch over the properties for me.

Thank you

Daniel Mills · Answer

Hi @Miguel Matos ,

My name is Daniel Mills. I've lived and worked in Japan for the past 12 years. I started out teaching eikaiwa and now I'm a tenured professor at a university (after earning a masters and doctorate degree). I started RE investing 2014 and have since built up a personal portfolio of 9 SFH rentals as well as 20 duplexes which I own with some partners. Those properties are located in Alabama, Idaho, and Tenessee. I'd be happy to FaceTime or meet up, if you're in Kansai, to talk about how I did it. Please send me a message.

Daniel

Account Closed · Answer

@Miguel Matos with $10,000 you could house hack a duplex in a cheaper market. Where in Florida are we talking? Big difference between Miami and Jacksonville or Orlando.

Ola Dantis · Answer

@Miguel Matos Though 10k might not be quite enough to start, you should try to increase it to, say, 15k and I think that should start you on the journey to house hacking [FHA].

Also, you decide to move to a particular city in FL to find the deal you're looking for to start with and then build up with your portfolio and move to where you really want to live.

Sacrifice is a big part of real estate investing.

Good luck. Enjoy Japan 🇯🇵

Miguel Matos · Answer

I am in Osaka. I really love my job and life here but I feel like I won't be able to make enough income to start a family here in the future. If you are available I would really appreciate the facetime or meetup.

As for the question earlier about japanese houses, they usually are not built to last very long due to the earthquakes and weather here. At least to my knowledge

Ok so the FHA loan will let me get a home at a 3.5%. How much of the 10k should I put down? Half or all? I was thinking about putting around $7000 down and then use the rest for emergency.

My dad owns a small company so there will not be a period where I am without a job. It will be work and save in Japan, go back to Florida, rest a week, and then start working for my dad. So I should be able to continue with my savings of roughly 10-15k a year once in the states.

Miguel Matos · Answer

Account Closed

I only make around $20,000 a year so saving the $10,000 is half my salary. I am not sure if I can save 15k within the year before moving back. It just doesn't seem possible for me. As for where I really want to live... well part time Japan part time Florida. I am leaving Japan due to the low salary but I do enjoy living here, however I want a home with a pool and a front and back yard to do weekend barbecues with the family. That just does not exist here. I have never seen a house with a pool nor yards, just concrete and no grass.

Miguel Matos · Answer

Sure thing sir. Thank you

Daniel Mills · Answer

Hi @Miguel Matos , could you message me privately on BP? I can't share my email or phone number on a forum (BP rules). We can work out the details.

Thanks,

Daniel

Miguel Matos · Answer

@Daniel Mills I would be happy to meet in Osaka on weekends or Monday nights. I usually work until around 5pm on Monday. Is there a certain spot like a cafe that you would like to meet at?

Wayne Snyder · Answer

@Daniel Mills if you don't mind, would you let me know where in Idaho you are investing? I am saving up capital for my first purchase and trying to find people who may already have knowledge of my area.

Daniel Mills · Answer

@Miguel Matos , I think I can give you a couple of strategies to get started. I'm happy to meet in person in either Osaka or Kyoto. I am free on Mondays, Saturdays and Sundays.

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