Not really sure what direction to go.

[Travis Bill]

Background- Im 22 have 20k and my credit scores range from 680-720. I work in the Bakken oil boom where I recently acquired an excellent job in the 140k a year range. I work a rotational schedule 14 days on and 7 days off. Im not sure if i should concentrate my investing in ND or back home in wisconsin.

In ND, I pay 1300 a month plus utl's for a 625 sq foot dump. Nothing sells for less than 125k in my city. 1 bedroom 1 baths that are 100 years old go for that. Brand new double wides rent for 2400 a month. The idea iv had here is a lot in the 30k range and a doublewide in the 50k range which would probably have 30k in equity instantly in it. Im scared to invest out here though. The boom ought to carry to 2020 at the earliest, I think it will last longer, However it is an unconventional play and a drop of 20-30$ a barrel put me out of a job.

In WI. I can buy 100 year old houses where rent is 2.5% of the purchase price. 5.5% vacancy rate in city. Im curious what you all think of building of that age. My home area is a college area, 5 schools within 5 miles or so. I am also interested in the twin cities.

What do you all think? Also can I get an fha loan back home if im in it only 1/3 the time?

Thanks

[Dave Carpenter]

@Travis Bill - You are asking the right questions, especially for someone your age (our age). In my humble opinion, you have a few great options.

1. take the 20k and go get a duplex in the Milwaukee area - Because of your work rotation you could likely be back enough to manage it yourself if it is in pretty good shape. If you went FHA, you would have to be able to make that your primary residence, which might be tough. I bought a duplex in MKE using FHA and called it my primary residence for the first year (only 1 year owner occupied required), but certainly didn't live there every day.

2. Buy a house in the area you are working and rent out rooms to friends/coworkers. This could make you good money for many years, however you would need to think about exit strategy if the oil boom starts to fade.

3. Save most of that paycheck and in a couple years you could be a private lender, or buy properties in cash yourself. Back when I was single, i could live off of about $1000 per month. You should be able to save at least $75k after taxes each year. 2 years of that and you would be able to buy a pretty decent duplex.

This is a pretty awesome situation to be in for a RE Investor!

Also, if you are in Milwaukee on Thursday, you should stop by the BP meetup, I would love to meet you. http://www.biggerpockets.com/forums/86/topics/95876-biggerpockets-local-meet-up-for-milwaukee-members?page=3