On the hunt for my first deal!

[Ty Dunse]

Hello all! Let me introduce myself, My name is Ty and I live in South Dakota (I know middle of nowhere lol)! 

This is my first post after a long time of scrolling and reading what everyone else has to say. I can finally say that I have committed to finding a deal (If its a good deal) before my birthday in July! I have read countless books including a few out of the bigger pockets store, and the classics like think and grow rich, and rich dad poor dad. I have found myself crunching numbers on random properties throughout the quarantine and thinking how I can make things work including how to approach the folks that own properties. My core reason of typing this is too look for some input from the wise real estate people of bigger pockets. 

The market that I live in is a college town so has all kinds of rental opportunities and its fair share of terrible property managers haha. I am conflicted on trying to purchase a multi-family deal in town as I will most likely be moving away in about 12 months. I have thought about jumping into a house flip over the summer but can see that I will most likely get rejected by lenders for only being 20 years old with little credit. I plan on networking and talking to more and more investors in the market over the next few months to build relationships.

I appreciate any feedback you guys have! Stay safe!

[Andrew Adam]

Hi Ty,

South Dakota can be a great market, we will have to connect! Good job making a commitment to get your first deal. As an agent that works with investors I might have some value to offer your situation. I have had clients as young as 19 get their first rental property so there is hope. Having a cosigner on a single family home or a co borrower on a multi might be some options. Sometimes the idea is to pick a strategy and then see how you can accomplish it, other times it might make sense to look at your specific situation and see which one makes the most sense. 

   I think meeting with a banker to see what you would be qualified to buy would be a great first step. Do you want to have a few roommates and house hack a nice single family house that will appreciate well? Do you want to maximize units and get a duplex, triplex, or fourplex and live in one unit and rent out the rest while only putting down 3-5% ? The purchase price may depend on how much you have saved, how much the lender wants you to have in reserves, and your income level. So before shopping too much it might be good to see what you could get qualified for.

Let me know if you have any specific questions and I will try to help!

-Thanks!

-Andrew