Never too late to start!

[Rylee Whitters]

Hello everyone,

I am a 25 year old civil engineer EIT (engineer-in-training) that focuses on commercial and residential development design. I am excited to learn more about investing in real estate and starting a real estate portfolio in the near future. While I work towards becoming a professional engineer and working with developers, my goal is to own a couple multi-unit properties by the time I’m 30. I look forward to getting my feet wet in the real estate world and joining the community!  

Glad to be here,

[Matthew Kwan]

HI Rylee,
It really comes down to what your long term goal on investing real estate. You want to invest just to have a place to live and potentially offsetting your mortgage payment by renting out the vacated rooms or having x amount of cashflow in the future? Looking into single family houses or multifamily, as there is an actual land that you own and potentially build ADU/DADU in the foreseeable future. However, if you build the ADU and not condomise it, they appraisal will only view it as a SFR and give you the rent as SFR at 75% if lease agreements is being used. If you want to maximize your max rents then if might be a good idea to condomise it so that you can get rents as two separate units. Since last year of November, Fannie and Freddie has allowed borrowers to put min 5% down for conventional loans and being able to invest multifamily up to 4units.
Also, the beauty of FHA is that it allows you to put 3.5% down payment to invest in 1-4 units. However if you plan on buying 3-4units, there is a trigger rule for FHA, it is called the self sufficiency test. In order to past this SS test, your appraised market gross rental income at 75% has to be more/equal to your monthly mortgage payment (PITIA). These are something to be considered. Feel free to DM and we can talk more about it 

@Carlos Valencia

@Carlos Valencia @Albert Bui