Help getting started

[Rafael Perez]

Hey everyone. I'm 20 years old and I want to start house hacking but I lack the capital for down payments and renovations. Therefore, I want to do a fix and flip for my first deal to acquire capital for my house hack. But then again, I am stuck finding out how I am going to fund the deal with no money involved. Any tips or advice for my current situation?

[Jacob Stewart]

@Rafael Perez

Save up about 10k and buy a house with an FHA loan. House hack, live for free, save up all you can for the next deal. If you can also find a great deal and use a hard money lender to fund it could also be an avenue. Have a plan to refinance after a year or so and you're golden. You'd be amazed how much equity you can build in a year from just owning a home and fixing it up as you live in it. Better yet, buy a duplex and rent out the other side, always a good place to start. Living for free is a solid goal that way you can put your hard earned money to better use. After a year or so of fixing up a property get a cash out refinance to really get the next ball rolling. Real estate is not a quick game, but planting a seed early on can be harvested in just a couple years, then you can really start to scale quickly. Getting that first property is critical.