3 Year Cash Flow Goal

[Mary Kim]

Hi guys!

I’m 21 & am making 75K + 2-3K(ish) per month in commission. I have about $35K saved up & would ideally like to use maybe 20K on my first investment property. My credit score is something like 730 as well. In 3 years, I want to travel the world without worrying about jumping from job to job.

I live in San Diego & my big goal is Cash Flow so I've been looking at long distance investing. I'll hit my 2 year W2 FHA qualification January 2022! I was planning on getting my first place in SD when that time came, but I was just curious if anyone had suggestions on my particular situation.. if you were me, what would you do? I live with my parents right now, so if it made sense to just stack up on out of state investment properties while living at home for the time being, I'd be down to do that too.

I’ve dabbled in the idea of linking up with a realtor on my first out of state property but just feel a little stuck in regard to what I should actually do. I’ve been reading/learning this past year (my growth year I call it lol) & I’d love to start taking action. Any tips are very much appreciated!!

[Derrick Dill]

There are many threads on whether to go out of state vs more locally and you can check those out to make an informed decision for yourself and your goals.

I was based in southern California and bought locally there in 2016, did a house-hack duplex where I lived in one unit (2 bed/1bath, rented other bed to friend/roommate), and rented out the entire other unit. The tenant and roommate incomes just about covered the mortgage.

This turned out to be one of the best moves of my life, the property went up >200k in equity since then. I took out a HELOC and bought 5 out-of-state rentals with that equity. I moved up to the bay area for work and purchased another house-hack here recently.

Wanted to get your expectations closer to reality, with closing costs, you'll be looking at closer to 30k rather than 20k without grabbing my calculator.

You should start researching areas you would consider living with your ideal living situation in mind. Close to work? Close to freeway? How many bedrooms/bathrooms? Single family/multifamily? Condo? town house? garage? backyard? Narrow down your criteria, what are your must-haves? what are you willing to be flexible with? Your first step will be to contact a lender, probably best after you get that 2nd W-2