I recently discovered the BiggerPockets book series and website. I am currently reading the book series and learning everything I can. I'm really glad I found it because I have been interested in real estate investing for a long time. I am about to graduate college and want to start investing as soon as possible. As a young investor I am eager to learn everything I can about real estate and will take any advice. If anyone has any advice for a first time investor graduating from college, I am all ears. Don't hesitate to answer with anything! Would also love to connect with others who are young and interested in real estate investing.
Real Estate Broker · Salt Lake City & Oklahoma City · Member since 2018 · 3k+ posts · 2k+ votes
6y
HI @Ryan Rabinowitz and welcome to the BP forums! I'm pumped to hear that you are fired up for real estate investing and looking to make moves strategically over time. If I were in your shoes I would combine a few strategies like this:
Purchase a 4plex to house-hack right away or as soon as possible
After living in ^^ for 1 year move out and purchase a 2-4 unit property as a house hack
During ^^^ year look for a property that would be a good BRRRR candidate. Worst case scenario you sell it, best case you refinance and keep it
After living in 2nd house hack for a year or so, repeat this process.
During that time identify a few possible BRRRR properties.
Rinse and repeat.
This is nice and tidy and may not be how it plays out in reality, but in essence this approach gives you a few things of value: repetition and equity. By the end of a short 5 year span of this you could feasibly own between 12-25 cashflowing rental units and, most importantly, you'll be sitting pretty at 28ish with a good understanding of the process of valuing homes, buying homes, and operating rental properties.
HI @Ryan Rabinowitz and welcome to the BP forums! I'm pumped to hear that you are fired up for real estate investing and looking to make moves strategically over time. If I were in your shoes I would combine a few strategies like this:
Purchase a 4plex to house-hack right away or as soon as possible
After living in ^^ for 1 year move out and purchase a 2-4 unit property as a house hack
During ^^^ year look for a property that would be a good BRRRR candidate. Worst case scenario you sell it, best case you refinance and keep it
After living in 2nd house hack for a year or so, repeat this process.
During that time identify a few possible BRRRR properties.
Rinse and repeat.
This is nice and tidy and may not be how it plays out in reality, but in essence this approach gives you a few things of value: repetition and equity. By the end of a short 5 year span of this you could feasibly own between 12-25 cashflowing rental units and, most importantly, you'll be sitting pretty at 28ish with a good understanding of the process of valuing homes, buying homes, and operating rental properties.
Go out and get it, Ryan!
Thank you very much for the advice! I appreciate it. I will try to start out with something like that as I have been looking into house hacking with a duplex or 4plex. What if you are moving into a city with an expensive market? Also, where should I try to find deals on duplex's and 4plex's?
New to Real Estate · MN (minnesota) · Member since 2020 · 12 posts · 7 votes
6y
How much debt do you have with student loans? may not be bad idea to clear all that up before taking on loans, and you can get a better loan without the student loans
How much debt do you have with student loans? may not be bad idea to clear all that up before taking on loans, and you can get a better loan without the student loans
Edmonds, WA · Member since 2019 · 61 posts · 46 votes
6y
@Ryan Rabinowitz first off, awesome that you're thinking this way right out of gate. I'd say figure out what you want your goals to be and keep educating yourself on different strategies to see which ones fit into helping you reach those goals.
That said, I would highly recommend listening to episode 392 of BiggerPockets Podcast. Great episode about a guy here in Seattle who house hacked, rents by the room, and now makes $12,500 on only 6 properties after expenses. I would do this strategy myself, but I have my wife, my daughter, and another kid on the way. We could still house hack, but more along the lines of small multifamily. If you can take advantage of renting by the room though, you're not just stuck to small multifamily properties. Just keep in mind you'll have to make sure you're in a similar market.