22 y/o new investor looking to buy first property

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22 y/o new investor looking to buy first property

Jack Kresky
Austin, TX · Member since 2018 · 1 post · 1 vote

Hey All,

I’ve been following the BP podcast and have been learning about real estate investing over the past couple years since reading RDPD and have been wanting to begin my Real Estate investing journey! I just recently became debt free (paid off 60k in just over two years) so I figure now is a great time to buy. I’m currently renting in Austin, TX.

I have some cash saved and I'm looking to buy my first property (3 bed, 2-3 bath) in the next 3-6 months with the goal of doing a BRRR on it (floors, kitchen cabinets, appliances, paint, etc) and then renting out the rooms to house-hack.

Any advice for a newbie on their first property?

Is it possible to live for free with only 3-5% down?

FHA or Conventional?

If anyone is in Austin what are some good areas that are coming up that are in the 300-400k range?

I’m single and super flexible and can’t wait to get my investment journey started! Thank you for any advice in advance!

Jack

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Craig Sloan
Member since 2018 · 200 posts · 123 votes
6y

Congrats on paying off the debt and making the decision to invest in real estate!  It sounds like you've got a great plan and you just need to find the right property.  Just a suggestion but be open to other deals as well. If you came across a good deal on a small multifamily that might help you accomplish your goals as well.

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  • Craig Sloan
    Member since 2018 · 200 posts · 123 votes
    6y

    Congrats on paying off the debt and making the decision to invest in real estate!  It sounds like you've got a great plan and you just need to find the right property.  Just a suggestion but be open to other deals as well. If you came across a good deal on a small multifamily that might help you accomplish your goals as well.

    1Reply
  • Ryan KellyBusiness Member
    Real Estate Broker · Austin, TX · Member since 2018 · 1k+ posts · 1k+ votes
    6y

    House hacking is a perfect strategy when you are young and single, so congrats on taking the first steps! There are a lot of opportunities in Austin for this strategy. BRRRR is a bit trickier as that is designed for a deeply discounted property which are rare in this market at the moment. Secondly, you won't use a conventional or FHA loan for a true BRRRR as those start with private money and then refinance into traditional loans AFTER the rehab is complete. However, adding equity by rehabbing a property and refinancing in the future never fails to be a good idea and you can purchase a home that needs work using a conventional or FHA loan. If you want to chat about the market and test some ideas, I'd be happy to connect.

    [email protected]512-674-5478
    Ryan Kelly Group - Keller Williams5112 Reviews
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    1Reply
  • Leslie Crosten
    Member since 2018 · 55 posts · 16 votes
    6y
    @Ryan Kelly are you able to message me as I have a question for you! :) also original poster, Jack- we are looking at house-hacking a multi-family to start out. In a very similar situation. Good luck!
    1Reply
  • Timothy VanWingerden
    Real Estate Broker · Lexington, KY · Member since 2017 · 131 posts · 129 votes
    6y

    Jack, welcome and great to hear you getting started. I would recommend that you continue to network with local investors which will be huge help as you determine what area you want to buy. I started not too long ago myself and I am grateful for the network of investors that have helped influence my decision-making just through the various conversations that we have had. 

    1Reply
  • Jordan MoorheadBusiness Member
    Real Estate Agent · Austin, TX · Member since 2015 · 5k+ posts · 3k+ votes
    6y

    @Jack Kresky it's possible to live for free you just have to be creative, be willing to get uncomfortable and also do some work. Most anything that has any possibility of working needs some work. As @Ryan Kelly mentioned BRRR is really tough to make work in any market, especially hot, desirable areas like Austin because you need to find a place at a large discount and do a large rehab which the 3-5% down financing will make tough.

    [email protected]512-888-9122
    The Moorhead Team5142 Reviews
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  • Danny Webber
    Real Estate Broker · Austin, TX · Member since 2016 · 834 posts · 449 votes
    6y

    i would go conventional and look for programs with BPMI or LPMI to get rid of MI

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