First Rental property

[Edgar Gonzalez]

I am currently 19 & want to buy my first rental property by age 20-22, what general steps should I take in order to reach my goal? Any advice or tips help, Thank you.

[Moises R Cosme]

Edgar, 

1. Credit - make sure you manage it; you need credit cards & loans in order to develop it, BUT use credit sparingly.  You get max points for each line of credit by using less than 30% of your available balance.

2. Work - you need to stay in the same line of work for 2 consecutive years.

3. Money - you need to save money; typical closing costs on a purchase range from 2.25% of the purchase price over & above your down payment.

4. Reserves - you will need to have 6 month's worth of mortgage payments once you apply for the mortgage

5. Organization - find a way to simplify your life; once I got serious about owning real estate, I simplified my life (work - eat - work - work out - eat - read - sleep & do it all over again, every day until I bought my first house)

6. Talk to a loan officer!!! I highly recommend going on line & finding a loan officer to talk to, tell them what you want to do and most loan officers will give you an outline for what you need to do to qualify for the mortgage.  They will give clear numbers based on what you expect to spend.