New Investor - Cashflow Properties
Hello Everyone,
I am a 24 year old mechanical engineer living in Santa Rosa, Ca. I am living with family, debt free and my biggest goal in life is to own rental property; However, I don't exactly know where to start or how to find decent deals (with the market being as high as it is).
I would love to start by owning single family long term rental properties with the goal to generate additional cash flow (Ideally 1k a month).I've heard for rental property loans you need 25% down and it appears my only option here is to save up for largest downpayment possible to minimize monthly expense (to achieve the 1k cashflow)..
Eventually, I would like to get into duplex's/short term rentals but I dont think I have the downpayment for that with the markets I am researching (Santa Rosa, Ca/Scottsdale, AZ/Tempe, AZ)
If anyone has any advice for me on how to get started I would greatly appreciate any feedback/experiences I can get.
Best,
Hunter
Most Popular Reply
Hi Hunter,
If you don't mind living in the property I would recommend doing a "house hack". Use a FHA loan and get a multi family home up to 4 family as your primary residence.
That way you only have to put down 3.5% as opposed to the 25% target you have in your head now.
I would recommend reading Brandon Turners Investing in Rental Properties book.
- Good luck and if you need anything reach out.
- Mike