18 Year Old and Looking to Buy First Rental Property

[Jonathan Roberts]

Hey guys, so I've been intrigued by real estate investing since I was 16. I've saved since I've started working and now at 18, I'm close to the point where I can buy my first house. I'm looking to buy a house that's close to a 3 bed, 2 bath house. I'd rent out the 3 bedrooms and turn another area into an area where I would sleep. I'm just not sure what I should be looking for as far as price. I know I could get about $450 per room, but I'm not sure how high of a mortgage I should take on. Any comments or ideas would be greatly appreciated. 

[Michael Haynes]

Hello Jonathan Roberts. I just sold four Commercial lots with a teardown house in S. Tampa and paid $175,000 Cash for a 3/3 Townhome with one car garage and pool, behind the Home Depot in Valrico. I did my research in the Brandon area for six months before the sale gave me the money to make some offers. My Target area was North of Brandon Blvd. 3/2 with garage and pool. I think you are putting the Cart before the Horse. You don't have Cash and need to see what you Pre-qualify for as a Mortgage with your Banker etc. You can't use "projected rental income" to get a Mortgage. You will find that living in the same house with your Tenants is a nightmare scenario in the long run. I gave that up 50 years ago in California when I tried to be a Hippy. That was before the Yuppies in Silicon Valley and now the Millenials. I can't imagine that on $12 an hour you could qualify to buy a 1/1 apartment off of Hwy 60. But, that is a place to start. There is a Trailer Community over by Plant City that will Finance with 3% down and they are cheap enough and big enough to live in one room and rent out the other two, with Carport and Pool etc. You could study "Deals on Wheels" or "Making Money with Mobile Homes" by Lonnie Scruggs and start like that with low money down and easy financing. There are hundreds of Trailers and Pre-fab homes over on 78th St. South of Hwy 60 that rent with No Down Payment and First Month Rent up front. Get the biggest one you can find and rent the extra rooms to your "friends" and save up to move to your own Home. The main question is if you own your own home? No? Then, why do you think of buying a Rental and not taking advantage of all the First Time Home Buyer Loan and Tax advantages? Huh? Study this with BP and do that first. I am selling a 3/1 with side porch and washer/dryer/storage room, just off the Sligh and I275 exit, behind the Post Office on Nebraska Ave. 6710 N. Harer St. Tampa 33604 for $200,000. All fixed up, new roof, 900 sq. feet of refinished Terrazzo floors, paved carport, two pro-built sheds in back for storage, no trees on the lot and really good neighbors. Check it out. I bet you don't qualify to buy it. Estimated value this week is $217,000. You may do better to study first, research your areas on Zillow, find an Agent who has time to talk and help you follow some of your picks as they get listed and go up for offers and sell to see what the Market will give you to try for. Get back if you want to talk shop.