Getting that first property

[Anne ODonnell]

Hello! I am a newbie here with an interest in REI. I am starting my journey reading books and listening to podcasts. I read The Book on Rental Property Investing and am currently reading Rich Dad Poor Dad. I plan to explore these forums as well.

I do have some work to do in the personal finance department.  I have a personal loan and student loans to take care of.  I don’t have much of a significant savings at this time and will need to build that up.  

I currently live in Massachusetts and prices around these parts are wild.  I am in the process of trying to figure out which investment strategy is best for me.  I am currently in a 15 year mortgage at 2.5%.  I am hoping the equity I am building can be put to good use someday.  

I am hoping to meet new people with similar goals and interests.  Right now, I just can’t see how I can make that first step to acquiring my first investment property. I know this may change the more I learn. If anyone is willing to share advice or tell their startup stories I would love to hear them!

[Jonathan Bombaci]

@Anne ODonnell you could turn your current home into a rental and go househack a multi-family with a 3.5% down fha loan or a 5% conventional loan on an owner occupied 2 family. I'm not sure where in MA you live but if your SFH is worth $290k you're likely at least 45 mins outside of Boston. And given the loan terms you described that isn't FHA so you should have that loan available to you again.

If you have $20k saved that should be more than enough to buy a nice multi family under $350k and now you go from 0 investment properties to 2 overnight. It's not pretty, or easy depending on your lifestyle and family situation but getting started rarely is. I had a client who got serious about financial independence and sold his SFH and vacation home to househack a 4 unit in Waltham with his wife and 2 young kids. He's now FI through real estate and quit his W2 job earlier this year.
Best,

Jon