Excited noob here looking to start in Knoxville, TN! Please Read!

[Chaz Allman]

Hello BP superstars (and rising stars)! 

First of all, thanks BP for all of the knowledge, great stories, and for the encouragement to be cautiously courageous in real estate! This place gets my blood bumping with excitement every day. So many of you are so stinking smart.

My name is Chaz and I’m 25 years old. I have no hands on experience in real estate. That’s right, zero. In fact, I haven’t even purchased a personal residence (which I know may be a debatable topic). Currently, I am a tenant myself here in Knoxville, TN. I’ve been reading everything I can get my hands on about building wealth and real estate. I am self-employed and I love everything about it. The grind is so much fun and still have much time to spare! Fortunately, I have the liberty of listening to BP podcast all day while I do my work, which only makes it all even better. I couldn’t be more pumped about preparation to get my first deal!

My goal in real estate (like most) is to achieve financial freedom. My long term goal is 20k m/o passive income upon retirement (before age 60) from investment properties. I would love to be able to leave my children with much and enjoy life with them during their childhoods (not just when they are older with my grand kids). That being said, I don’t have much intention on quitting my day job at the moment since it produces great invest-able income at my stage in life. I have a lovely wife, one sweet baby boy, and one more on the way.

This leads me to my first investment question (man I really hope someone answers this because it's eating me) -- I'll be able to invest around $25-30k a year of liquid cash annually starting out. Obviously my options will grow as my knowledge and portfolio grow. My goal will be to buy and hold for passive income (either multi unit or SFH but totally open to opinions on that). Here is my question, would me buying a primary residence be the wisest first investment with a down payment of 20%? I'd likely have another $25-30 cash ready to go again within a year plus a possible home equity line of credit to stack. 

Thanks for much opportunity in advance!

Chaz Allman

[Derek Tellier]

Welcome to BP @Chaz Allman

I’m in Maryville and also on the edge of breaking in but I’m 20 years older with less reserves so kudos to you for being smarter and starting early. 

I think the only advice I could give would be what many hear have recommended. Buy a duplex or triplex as you will be able to likely get a low down payment as an owner occupied with bonus for first time home buyer. You’ll get a good quick taste of what being a landlord is like as well. 

That’s my 2 cents. There’s lots of posts here about this so just keep reading up. 

Constant advice you’re likely to get Just take Action! Don’t be afraid to jump in. Sounds like you’ve got a good foundation.