Beginner in Long Island

Beginner in Long Island

New to Real Estate · Long Island, NY · Member since 2014 · 3 posts · 1 vote

I am 21 years old from Long Island and am fortunate to have a good secure job in construction paying 60k/yr after taxes before overtime

I am new to real estate and have been trying to learn as much as I can do I can make the most lucrative first big move

The plan I have leaned towards to this point is to invest in a duplex. I want a place I can call "home" but I don't want to put all my eggs in one basket and put myself in a position where I'm just working to live paying bills and can never accumulate enough money to make my next move. A duplex will give me a home and I can rent which would provide me with experience as a landlord and with the problems that come with the territory.

I Would like to do this without having to put 20% down but don't understand fully the pros and cons of putting down less. If it is recommended I am patient and will continue saving so I can do so

Any advice on how to go about my plan or other opinions on what I should do for my first big investment would be greatly appreciated 

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  • Salt Lake City, UT · Member since 2015 · 86 posts · 27 votes
    11y

    @Justin Simoes

    Welcome to BP!

    You should look into an FHA loan. That way you can get financing for as low as 3.5% down and keep some of your emergency fund or use it for some rehab costs if needed. With an FHA loan you are typically going to have to pay a mortgage insurance since the loan is backed by the government which is an extra cost each month yes, but to me it seems worth it to not have to put so much down.

    Especially if you do some renovations and gain some equity in the property you could then refinance it with a conventional mortgage without a down payment since most banks will finance a certain percentage of the property value. So if you gain enough equity you could refinance and remove the monthly mortgage insurance cost.

    I think any sort of multi family as a live in HOUSE HACK is a great idea to start out with. That is currently my plan as well. If you haven't yet you should absolutely check out the podcasts. They are a GREAT tool to use to keep learning about REI.

  • Specialist · Rockland, MA · Member since 2010 · 7k+ posts · 2k+ votes
    11y

    @Justin Simoes

    Welcome. 

    Locate and attend 3 different local REIA club meetings great place to meet people gather resources and info. Here you will meet wholesalers who provide deals and rehabbers (cash buyers).

    Two Great reads, I bought both J. Scott The Book on Flipping Houses, The Book on Estimating ReHab Costs http://www.biggerpockets.com/flippingbook

    Consider checking out HUD homes for small multi's owner occupied gets first crack.

    Download BP’s newest book here some good due diligence in Chapter 10. Real Estate Rewind Starting over

    http://www.biggerpockets.com/files/user/brandonatbp/file/real-estate-rewind-a-biggerpockets-community-book

    Good Luck

    Paul 

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