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Updated 11 months ago, 02/19/2024
Starting real estate investing as a married 24-year-old
Hello, I am wanting to begin real-estate investing in the St. Pete area and have a few questions that I would like to know more about if anyone is willing to help out. I am new to real-estate investing and want to purchase my first property by the end of this Summer. I am searching into multi-family properties, moving into one unit and renting out the others, then eventually moving out and renting out all units. From your experiences, is there any advice you could give on location within St. Petersburg and the surrounding areas, if this market is in a good spot to jump in, or if it might be better off to wait or go into single-family home investments? Also, are there certain areas I should be searching deeper into within the St. Pete area that tend to be more positive as far as multi-family properties? Would love the insight on how I should get started in this search or if I should go a whole different route from someone who has experience in this line. Also, would love to talk with any of you separately to gain more insight on the area as well as my thoughts.
Hey Joey, That's a big ask.
Have you attended any local REI meetups in your area to meet other investors in the area who can guide you on the nuances of St. Pete? From what I understand, St. Pete has done well, and that's true of a lot of markets. Every market has good and bad areas so be warey.
When considering ROI on single family vs. multi, the multi will provide you with revenue to offset your house payment while you're living there. Once you move to your next property, the unit you lived in may provide quick profitability. Single family homes are beholden to higher cost per unit in aquisition and loan payments. They represent 100% of the revenue potential as well as the loss of lease upon move outs. There are pros and cons to each.
As a young married person, it's important to have your spouses buy-in, especially if you're going to be living in your multi-family home. It may limit the areas you look at since it is your home, not just an investment.
Best wishes to you.
Quote from @Joey Keske:
Hello, I am wanting to begin real-estate investing in the St. Pete area and have a few questions that I would like to know more about if anyone is willing to help out. I am new to real-estate investing and want to purchase my first property by the end of this Summer. I am searching into multi-family properties, moving into one unit and renting out the others, then eventually moving out and renting out all units. From your experiences, is there any advice you could give on location within St. Petersburg and the surrounding areas, if this market is in a good spot to jump in, or if it might be better off to wait or go into single-family home investments? Also, are there certain areas I should be searching deeper into within the St. Pete area that tend to be more positive as far as multi-family properties? Would love the insight on how I should get started in this search or if I should go a whole different route from someone who has experience in this line. Also, would love to talk with any of you separately to gain more insight on the area as well as my thoughts.
Hi Joey,
This is a great strategy on getting started. This strategy is known as House Hacking which means buy as primary and rent out the other units or rooms so they can help pay for your mortgage. Many of our clients use this strategy to get their foot in the door. This strategy also teaches you how to be a landlord . Another great thing about house hacking is that you can slowly rehab the property if needed or if your looking to get higher rent. I'm not super familiar about the area your looking to purchase in. I cannot advise on that. I can advise on the financing part in terms on how to structure your loan and making sure you have an exit strategy that will allow you to continue to purchase your next investment and continue to rinse and repeat. Make sure that whoever you decide to work with that they know how to help you navigate and provide you with the best financing options for your scenario in order to start on the right foot.
Hi @Joey Keske, I work with a few investors/investor focused realtors in the area that can assist you with house hacking a multi-family property in the area. Reach out to @Josh Green. He's helped a ton of my investor clients in the area accomplish the same exact goals that you have.
- Raymond J. Rodrigues
- [email protected]
- 619-456-8311
Definitely read up on house hacking which is what you are trying to do. Can't comment on St. Pete but I can tell you with today's interest rates and sticky higher prices, house hacking is very tough to make happen successfully in most places in the country. Keep learning and happy investing!
Hi Joey,
Welcome to the forums! I am a big proponent of buying a 2-4 unit property, living in one unit and renting the other(s) out. It allows you to take advantage of a primary residence loan (lower interest rate and lower down payment requirements) while also becoming a landlord. The rules just changed for Conventional as well, and now only a 5% down payment is required for these 2-4 unit properties. Feel free to reach out anytime with questions!
John
Hey Joey, congrats on your beginning of real-estate investing in St. Pete. That is where my husband and I got started AND we "house hacked" which is your strategy :) highly recommend - it's served us well.
I personally invest in areas that there have development plans for the future knowing that I will likely gain appreciation from the investment. I also like to be close to Central Ave as demand for rentals will be higher and I can also ask for higher rents. There are a lot of great pockets in St Pete that are gentrifying and those are the areas I tend to favor as well.
From a lender perspective, multi family is also a great strategy as the income of the other unit(s) will help you to qualify for a higher purchase price. As an example, I'm working with a first time investor who qualifies for 300k single family OR 475k three units. You typically only need to put down 5% on a 2-4 unit which in my opinion is a no brainer! Making the decision to purchase multi-family has been the best decision we've made. If you want any further insights on St. Pete, lending, investing, local meetups, shoot me a message :)