How did you get your start in real estate investing?

How did you get your start in real estate investing?

Investor · Pompano Beach, FL · Member since 2016 · 57 posts · 37 votes

I got my start in real estate investing unintentionally when I was about 24 years old. I was a bartender in Connecticut and making very good money. I decided it was time to “become an adult” and buy my first home. I had a very good friend and coworker who strongly suggested that I look at multi family homes so I could live in one and rent out the other unit(s). Although I wasn’t completely shut off to the idea, I had bigger plans for myself and wanted a modest single-family home, with a yard where I could entertain and impress my friends.  After speaking with the real estate broker my friend recommended I decided to look at and eventually purchased a duplex in a decent but not fancy neighborhood. I lived on the second floor and rented the first floor to a couple of college kids. Little did I know what an impact this would have on my life. Not only did one of the tenants become a lifelong friend (25 years and running), but my monthly living expenses were only $200 a month. About six months later when I got a roommate I was actually cash flow positive about $400 a month. This allowed me to save almost all of my income. A short time later when I moved to New Jersey I purchased a small condominium with all of the money that I saved. I rented both sides of the duplex and was supplementing my income nicely. A few other incredible opportunities presented themselves and because I was saving money hand over fist, I was able to take advantage of them. 

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John MorganPro Member
Rental Property Investor · Grand Prairie, TX · Member since 2018 · 2k+ posts · 2k+ votes
6y

Had a couple beers with my wife 5 years ago and lobbed out an offer on a vacation rental we looked at the previous day. Had no clue about real estate or how I would come up with the money in two weeks..because I made a cash off of 130k. 🤣

Five years later I’m up to 10 SFRs. No regrets and enjoying the ride! Passive income is fun!!

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  • Investor · Marin County California · Member since 2018 · 1k+ posts · 2k+ votes
    6y

    My dad. Emigrated to U.S. April 1966 at age 40 from communist s*^*-hole. Bought a Chicago 3-flat in September 1968 with seller financing and rents from upstairs and basement apartments paid his entire PITI nut. What other example do you need?

  • Investor · Pompano Beach, FL · Member since 2016 · 57 posts · 37 votes
    6y

    @ dariusogloza

    that’s great to hear that your dad came here to pursue the American dream and did it. Did he make any other investments? Did you follow in his footsteps and continue the RE investing? 
  • Joseph ScoreseBusiness Member
    Banker · Philadelphia · Member since 2009 · 2k+ posts · 633 votes
    6y

    @Walter Fabiszewski purchased my 1st 4 unit in 1994 now own 74 doors amongst a portfolio of multi family. have bought and sold 100 plus properties and love every day of it.

    Regards

    Joe Scorese

  • Investor · Pompano Beach, FL · Member since 2016 · 57 posts · 37 votes
    6y

    @josephscorese

    What made you purchase that first four unit property? Did you just decide on your own? Did you have a friend or family member influence you? Did you read books about real estate investing?

  • John MorganPro Member
    Rental Property Investor · Grand Prairie, TX · Member since 2018 · 2k+ posts · 2k+ votes
    6y

    Had a couple beers with my wife 5 years ago and lobbed out an offer on a vacation rental we looked at the previous day. Had no clue about real estate or how I would come up with the money in two weeks..because I made a cash off of 130k. 🤣

    Five years later I’m up to 10 SFRs. No regrets and enjoying the ride! Passive income is fun!!

  • Investor · Pompano Beach, FL · Member since 2016 · 57 posts · 37 votes
    6y

    @John Morgan

    Gotta love the liquid courage!


  • Rental Property Investor · Westminster, MD · Member since 2014 · 165 posts · 221 votes
    6y

    @Walter Fabiszewski

    Bought my first house as a foreclosure, fixed it up and took out a Helco. Used that to buy another house and rented out the first one. That was 3 years ago, now we have 10 units over 5 rentals. And we are actively looking for the next one now.

  • Rental Property Investor · Grove City, OH · Member since 2018 · 93 posts · 71 votes
    6y

    Saved $2k a month on a $55k salary, in a less than a year had $20k saved - used this as my first DP for a househack. 

  • Handyman · Pittsburgh, PA · Member since 2018 · 5k+ posts · 13k+ votes
    6y

    I've told the story before but it always bears repeating. I started off in Athens, Greece by renovating three apartments. Then, after I moved here to the USA, met my wife, and got married, she brought our first SFR deal to the table, almost by accident. I didn't really start investing in rentals, she did. Our first financing was the simplest possible: we owned our own house outright. We took the money to buy the place out of our own house as a low-interest home equity loan and paid full price for the other house, transferring equity that made us no money into equity that made us some money.

    It wasn't a home-run deal, it didn't turn us on full bore to this immediately, but it got us started.

  • Investor · Marin County California · Member since 2018 · 1k+ posts · 2k+ votes
    6y



    @Walter Fabiszewski My father ended up owning a 12 unit building, a SFR, another 3 flat and an investment property in Florida. I have purchased and rented or flipped over 25 properties.

  • Investor · Pompano Beach, FL · Member since 2016 · 57 posts · 37 votes
    6y

    @Account Closed

    Isn’t it amazing what you can do when you put your mind to it? I’m sure the sacrifice of trying to save $2000 a month on a $55,000 salary was a challenge, but looking back on it now seems so worth it! 

  • Investor · Pompano Beach, FL · Member since 2016 · 57 posts · 37 votes
    6y

    @Jim K.

    As I mentioned above, I inadvertently got into real estate investing by purchasing a duplex is my first home and “house hacking“ to be able to save money for additional purchases. However I really started building equity through real estate on the back of a lot of sweat equity. My dad was a carpenter and I learned a lot from him and my business partner was a contractor so we both build equity by renovating the houses ourselves.

  • Investor · Pompano Beach, FL · Member since 2016 · 57 posts · 37 votes
    6y

    @Darius Ogloza

    That’s awesome that you had a family member to learn from. I’m not complaining and I’m grateful that I learned what I did when I did, but I wish I had a family member as a mentor to have taught me at an even younger age.

  • Investor · Columbus, MT · Member since 2013 · 1k+ posts · 1k+ votes
    6y

    @Walter Fabiszewski

    We started with a house hack duplex bout 8 years ago. Paid it off in 3 years due to house flipping a house. Now we have 14 rentals and and loving the cash flow. We have house hacked 4 times before "settling down" in a longer term home to raise our kids.

  • Rental Property Investor · Seattle, WA · Member since 2018 · 129 posts · 163 votes
    6y

    @Walter Fabiszewski

    My wife introduced me to it along with my CFP. Prior to REI (about 8 years ago), I had -38000 net worth. It was a gut punch, as I was in a mid 120K/year tech job. And we had to move from our SFR in a bad neighborhood (we wanted new and space), and forgot the cardinal rule; location, location, location.

    After selling all my liabilities (cars) and minimizing what we just needed. And borrowing against my 401K (575K), we bought the ugliest house in the best area. And poured the rest of our life savings (10K) and also borrowing against my in-laws for another 20K rehab. We lived in it, and then two years later sold it for 950K cash (no contingency or concessions), and all tax free.

    That was my personal "aha" moment. And first start into flipping, then BRRR, then HML, then Commercial MF REI.

    Thanks for reminding me how I started, you sometimes forget.

  • Rental Property Investor · Rochester, MN · Member since 2017 · 224 posts · 323 votes
    6y

    My personal home was my start. Bought a foreclosure with an FHA loan for $45k in 2013. Fixed it all up myself only hiring out new HVAC. Spent my paychecks as they came in fixing this place up. Travel nurses for 5 years with my wife and rented our house to friends while we were away. Now years later I have over $100k equity and used that plus cash for a down payment to buy a 12 unit apartment that I closed on TWO WEEKS AGO!

  • Rental Property Investor · Minneapolis, MN · Member since 2019 · 4 posts · 6 votes
    6y

    @Walter Fabiszewski

    Asked my brother in law which podcasts he listened to and he mentioned BiggerPockets, I remember watching Brandon Turner's YouTube videos and thought I'd give the podcasts a listen.

    Listened to many many podcasts and read BiggerPocket published books. Sat down with my wife and set up a budget. Recently purchased a home we are house hacking!

  • Investor · Pompano Beach, FL · Member since 2016 · 57 posts · 37 votes
    6y

    @Joshua D.

    That’s a great story. When I got my real estate license in southern New Jersey I became friendly with many agents and brokers from different offices. I had one broker tell me that if he was single (like I was at the time) he would be buying and “house hacking” (Although he did not use that term) every two years. Although neither he nor I are accountants, at the time the tax law was if you live in a house for at least two out of the previous five years you can sell it and not pay capital gains tax on profits up to $250,000  He would say to move into the property, work on it over the two years and then sell it to take both of sweat equity and market appreciation.

  • Investor · Pompano Beach, FL · Member since 2016 · 57 posts · 37 votes
    6y

    @Account Closed

    Outstanding story. I am so happy to hear how you were able to dig yourself out of the hole (which I always thought was an odd saying: if you're in a hole how do you get yourself out of it by continuing to dig deeper?) In any case I was well on my way to financial freedom in 2005 right before the market crashed. When it finally did a year or two later (depending where you were in the country) I hit rock bottom because I deviated from my business plan. After a few short sales, a few foreclosures, a bankruptcy and my credit score plummeting down to about 497 I finally stopped the pity party and began to rebuild. Now I have an 811 credit score, a $92,000 HELOC and a cash reserve for my next BRRRR.

  • Investor · Pompano Beach, FL · Member since 2016 · 57 posts · 37 votes
    6y

    @Andrew Carlson

    Another great story. Most of all congratulations on closing on the 12 unit apartment building! Keep up the hard work. 

  • Rental Property Investor · Seattle, WA · Member since 2018 · 129 posts · 163 votes
    6y

    @Walter Fabiszewski

    Great story also - Perseverance builds character

  • Investor · Pompano Beach, FL · Member since 2016 · 57 posts · 37 votes
    6y

    @Brent H.

    So glad to hear that you did your research before diving in to investing. Even better that you took action and didn’t suffer from analysis paralysis like many newbies do. 

  • Investor · St Petersburg, FL · Member since 2014 · 231 posts · 221 votes
    6y

    Accidental landlord. 

    I bought my first home, then a few years later I got PCS orders. Another guy in my unit was doing property management with his wife as a side hustle and convinced me to let him rent it out. I still have it, still cashflowing. 

    A few years later, the Air Force was making some big cuts and I was certain I was getting kicked out. I had to decide what I was going to do when I grew up, so started reading investing books. I didn't get kicked out (also didn't have to grow up!), but kept learning and investing. I'm up to 5 doors including my half of a duplex hack.

  • Investor · Pompano Beach, FL · Member since 2016 · 57 posts · 37 votes
    6y

    @Colin Reid

    First off I would like to say thank you for your service to our country. Are used to volunteer for big Brothers big sisters and my “little brother” is currently serving in the Air Force.

    First off I would like to say thank you for your service to our country. I used to volunteer for big Brothers big sisters and my “little brother“ is currently serving in the Air Force.

    it’s funny how things sometimes just happen to and for us. I’m sure you realize that it was a blessing in disguise how you “fell into real estate investing“. Keep up the great work.

  • New Bern, NC · Member since 2017 · 246 posts · 173 votes
    6y

    @Walter Fabiszewski

    After being a tenant myself for 10 years, in 2009 I bought a single wide for 10,000 and put it on a lot in the country for $100/mo and lived cheap. In 2014, with the single wide paid off, My husband and I bought a 3 bed 2 bath foreclosure for $83,000 to move into and fixed it up. (House is now worth about 140,000.) We still rent the single wide out for 575/mo. In 2018, we took out a HELOC on that primary residence and used a 401k loan, and purchased a 3 bedroom double wide we rent out for 800/mo. In 2019 I bought two more 3 bed 2 bath SFRs that we have listed on Airbnb. We have acquired one more just like it this year and are looking for more. Loving every minute of it! Thank you everyone for sharing your story!

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