How can I get started?

Question

I'm currently learning about real estate investing. I'm reading books and trying to figure out on how to get started. I had just finished reading the ultimate beginners guide, which was very helpful. I'm temporarily living with family members right now and don't pay any mortgage or rent, which gave me the opportunity to save up since I moved out from renting an apartment a year ago. I have a full time job and have good credit. Unfortunately, I have yet to still pay off my credit card debt and plan on completely paying that off soon. I also have a school loan and car loan. I plan on moving out very soon and was thinking that maybe I can purchase a duplex, where I can live and have the other unit get rented. What are your thoughts on what I should do or how to get started? I would like to invest in multi-family homes in the future to buy and hold.

Dave G. · Answer

Keep living with your relatives, this is an exceptional financial opportunity that you may not have again (or want again) as an adult. I would do this until you pay off all of your debt. During this time keep researching how to do a house-hack with a duplex, but delay a purchase until you get rid of the debt.

Or, at least do this until you get rid of the cc debt. Carrying cc debt is dumb. I like using credit cards as a tool, but do not carry a balance, ever! Pay them off every month, for the rest of your life w/no exceptions.

I suppose your school loan and car payment may be low interest, but there's no need to rush into this at a young age if you can clean up your balance sheet and enter investing in a much healthier financial condition a year or two later.

Good luck to you,

Dave

Ken Krueger · Answer

As much as you probably don't want to hear this, stay with your relatives as long as you can to save as much money as you can. Once you do buy and move its definitely not a bad idea to get a two or three unit that will either pay for its self or pay you to live there. Plus if you move in to the property you can use an FHA loan to have less money out of your pocket.

Duncan Hayes · Answer

Keep your living situation the same. There's many options for someone just starting, and since you have solid income and credit, pretty much all those options are available for you. For someone like me, who was financially irresponsible when I was younger, I had to find ways to get involved w/out using my own credit. I sure as heck didn't have steady income as far as a mortgage lender would be concerned. I started with wholesaling, because it didn't take much money, pretty much no money, and I didn't have to use my credit. If I did have good credit and the financial requirements of a loan met, I probably would have purchased a 3-4 unit property and house hacked it. Having a good financial record as far as time at your job, income, and good credit, the possibilities are literally endless for you. I'd really consider my goals, short and long term, and then figure out which strategy matches that most. In the end, we all just wanna become the private money, and there's a bunch of ways to make that happen, just gotta pick which way you wanna go!

Much luck and success to you. Please reach out if I can be of any assistance to ya!

Duncan

Much luck and success to you. Please reach out if I can be of any assistance to ya!

Duncan

Duncan Hayes · Answer

@Hector Diaz yes sounds like house hacking would be a great start for you. You would be able to occupy one unit, while the other one or two units pay for your living expenses. This would allow you to continue doing what you're doing, just in your own space.

Hector Diaz · Answer

Thanks everyone. Appreciate all the advice! I was thinking of continuing doing research while paying off the cc debt. Maybe once that is paid off, then I can start looking to find a 2-3 unit home. I don't plan to stay with my relatives for a long time, since I want to be able to have my own place and have the freedom to do what I want at my place. Although, I was fortunate to have them let me live with them, which help me significantly to save up to pay my cc debt.

Ned Carey · Answer

@Hector Diaz welcome to BP. It sounds like you are in a good position to get started. Don't worry about the car loan. Having that vs paying it off is helping your credit.

Gustavo Orozco · Answer

Yeah I agree with all these replies. I still live with my folks, at least until i close on my primary residence on the 28th of this month. Living with family is hard but not to bad really. It gave me the opportunity to buy two primary residence properties, one of which is now a rental.

How can I get started?

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