First time getting into real estate

[Jack Savohsky]

Hey bigger pockets community! It’s my first time ever getting into real estate and communicating with people who actually are involved with real estate. So I have $40,000 to my name right now I’m only 17 I’m in New York City heading into college next month and right when I turn 18 I want to become a real estate agent but I also want to invest my $40,000 into a multi family here in Queens NY or somewhere in Nassau county! Is it hard to find multi-families here? I appreciate any stories, tips and answers!

Also do you suggest I try and buy my first property when I turn 18 or wait and build my credit or is there some other way to take this.

I have made the $40,000 off NFTs

[Alexander Szikla]

Hi Jack - The best thing you can do is scale up to $70k-$100k and buy a four family with a basement via FHA

That would be ideal and create major cash flow and equity creation, plus you can not worry about a property manager and boost your yield.

Please do keep in mind that although cash on cash returns may be paltry as a relative percentage, absolute dollars may be comparable.

Moreover, the majority of your returns over the long run (10-30 years) will come in the form of appreciation, principal paydown or loan and tax benefits.

Due to the limited equity with FHA, these can be tremendous. For example, a 2% price appreciation on a 3.5% down payment would be a 57% return on appreciation alone. A 5% price appreciation would be 143% return year over year. Now run the same exercise for the principal paydown and factor in some cash flow / tax benefits on the side.

You cannot get returns anywhere near this in the stock market or any other alternative with such certainty and low volatility.