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Updated about 1 month ago, 10/15/2024
Looking for help with my first REI
Hello, I am new to Bigger Pockets and seeking guidance with my first real estate investment. I think now would be a good time for me to invest because I don't have any debt at the moment, a decent amount of money saved up, good credit score, and I have access to VA loan benefits where I could get a very low down payment. I just need a little extra help with the next steps and figuring out all of the details needed to make it happen.
I would like to close on a deal by the end of this year, using either my VA loan or an FHA loan to house hack. Not super sure of the exact market I'd like to invest in mainly because I've had trouble finding listings on the market. But, currently looking around the Saint Cloud area where I could do room rentals for college students or into the twin cities area, but the property insurance and taxes are a lot higher there. I also wouldn't be opposed to using a 203k loan to finance and renovate a multifamily to house hack and rent out (I know it's a lot more work and harder to achieve but I think the potential could definitely make it worth while, especially with the up coming changes going into effect soon).
In conclusion, I've done some research but definitely open to any opinions and suggestions from people with more experience. Any tips or advice for what exactly I should be looking into or staying away from would be great. Additionally, if there is anyone in or around Minnesota that has any state specific advice or contacts, I would love to get in touch to expand my network.
-Thanks, Leana
Definitely a great place to start! I started my investment journey with a VA loan and house hacked. What branch of service were/are you?
Quote from @Clayton Silva:
Definitely a great place to start! I started my investment journey with a VA loan and house hacked. What branch of service were/are you?
In the Air Force right now
Stellar, I've been Army for a few years now and the VA loan is the best loan product available to buy a home. It can be an extremely powerful tool to start to scale. Let me know if you have any questions
To rent to college students, look for homes near campuses or with large student populations. Research sales, rental rates, and vacancy rates, and learn about financing alternatives such as VA Loans, FHA Loans, and 203k Loans. Create a network, prepare for the future, and conduct extensive due diligence on properties. Contact Minnesota-based investors for guidance.
Good luck!
- Wale Lawal
- [email protected]
- (832) 776-9582
- Podcast Guest on Show #469
I would definitely recommend checking out the PA market right now! We're focused mainly in Pittsburgh but even then there's still ton's of investment opportunities here from Section 8, Student Housing, LTR's, etc...
If you're interested, I'd be more than happy to get you in touch with some of our investor specialists to help you start your portfolio!
Will do, I appreciate the advice!
Quote from @Leana Ruggles:
Will do, I appreciate the advice!
My pleasure!
Keep learning and growing...
- Wale Lawal
- [email protected]
- (832) 776-9582
- Podcast Guest on Show #469
#3 Ask About A Real Estate Company Contributor
- Real Estate Broker
- Minneapolis, MN
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#3 Ask About A Real Estate Company Contributor
- Real Estate Broker
- Minneapolis, MN
@Leana Ruggles well, that's simple enough, I have 2 potentials for you off-market now "done".
On Student rental side of things I would STRONGLY warn you against that UNLESS you can show you really know your stuff in this specific St Cloud market for specifically student rentals. It's NOT for the novice, it is unique, and very easy to loose a lot of $ first if jumping in blind.
Other than that, yeah, this is a rather simple one, you've clearly done some research so I won't beat ya with what you already know.
It is a very clicky market in this one though, so it's a far bigger emphasis on who ya know than elsewhere, or to that of who your working with who they know.
Personally, I'd check into what's on market but after getting things set on your buy-box i'd just make some calls and see what I could dig up. Again, clicky market and more about who ya know.
Student rental is easy, so ignore what's on market, really I could grab you 4/5 if want those no problem, several of the "old guard" are in process of retiring so that's a simple call.
make sure to check the specific ordinances for the college area, know whats blocks you want to be on, west side of river or east, etc..
- James Hamling
@Leana Ruggles You mention MN in general in a couple of your posts above. I am not sure if that means Northern MN is of interest to you, but we work with clients everyday getting into their first home/house hack. In fact, we just closed a new buyer on a beautiful turn of the century duplex in Duluth allowing him to househack the upper level.
I am biased but a HUGE believer in the house hack model. After buying and selling multiple pieces of real estate, we still own a house hack (somewhat unconventional approach with a carriage house & primary home), but we love the flexibility it affords us.
Shoot me a PM if you have any interest in chatting on the Northern MN market!
Sincerely,
Brittany Kuschel
- Brittany Kuschel
@Leana Ruggles this thread on student rentals may be helpful:
I appreciate the advice, because of the low availability in this area for multifamily homes with separate units, I thought room rentals could be a solution. When I was thinking of who'd want to rent just one room, one of my only thoughts were college students. With the college close by I figured demand would be fairly good.
You said it's more of a challenging market and it's clicky, is that in regards to finding and keeping tenants happy when it comes to multiple personalities? Or are you referring to there already being a lot of student rentals available, therefore the rent is closer to $300-$400 per room?
Honestly, I am definitely open to other options, that's just the one that stood out to me as far as bringing in cash and learning to work with tenants while keeping my down payment low and being able to live there (house hack).
Thanks again for the advice!
Hello, I don't really have a specific market that I'm looking in right now (which I know isn't super ideal), I've lived in most of the major areas around Minnesota. So I would feel fairly comfortable investing in the twin cities market all the way up to Duluth. As long as I can find a property that makes the numbers work, I'd be happy. I'll get in contact with you to see what you think the best option for me is, thanks!
I will definitely check that out, thanks for the recommendation!
You could check out Furnished Finder if you find a property close to a hospital. The website specializes in visiting/temporary nurses, an option if you didn't want students.
Quote from @Jennifer Ayers:
You could check out Furnished Finder if you find a property close to a hospital. The website specializes in visiting/temporary nurses, an option if you didn't want students.
Thanks for the suggestion! Would this be a viable option for hospitals of any size? Or does it need to be one in larger cities? From the little I've learned, it seems like it needs to be hospitals with a high need to bring on more staff/nurses but I'm not sure if local clinics would have that much of a need. I would hate to set something like that up and then have super high vacancy rates due to little demand in my area. How would you go about looking into demand in certain areas? Do you recommend calling the hospitals HR departments to get in contact with their housing recruiter or are there websites you can find that on?
Hi Leana, My friend has used it for a few years. On their website it looks like they have a blog and some info on how to set up your place. She told me that 15 minutes from a hospital was the best according to the nurses especially with snow. On their website there is a spot that you can add your zip code to see the demand. I also know that other professionals use that website. She has a semi pro baseball player for the summer, and another contract worker. I think it was just started with travel nurses. Let me know how it goes!
Awesome, I will definitely check into that, thanks again!
Hey Leana, you should try interviewing some investor friendly agents who specialize in sourcing off market deals. They have deals you can look at with better margins and less competition compared to on market.
You can do some sourcing yourself through facebook groups, wholesaler email list and and even picking up the phone and cold calling some home owners that may be tired landlords, doesn't owe anything and has built up some equity.
With enough volume you should come across some solid deals that are worth closing on by the end of the year as you planned.
- Nadeem Alamgir
- [email protected]
- (216) 677-0585
Quote from @Nadeem Alamgir:
Hey Leana, you should try interviewing some investor friendly agents who specialize in sourcing off market deals. They have deals you can look at with better margins and less competition compared to on market.
Thanks for the advise, I am trying to build a strong team to work with at the moment and have already found a few very helpful people through bigger pockets!
Hey Leana, Any luck with finding a solid house hack in the Twin Cities? I've seen a few good options for this. Happy to message/share those.
A friend of mine has a MTR that's been a great cash flow for her--and she prefers it over her STRs. The company she uses handles the entire transaction. And the renters tend to be "easy" with the MTRs, too.
I've met so many wonderful investors here in the Twin Cities! You're in a good spot.