REI Newbie introduction.

[Lola Acosta]

Hello BP! We are a young-ish couple with a small family looking to start investing in Real Estate. He is a SAHD and I am a nurse who has worked a LOT this year due to the Pandemic and now have a sizeable? amount in savings that I would like to put to work for us. I recently and surprisingly discovered that I have a passion for real estate and would like to turn that into a wealth building strategy. The goal is to replace my nursing income and eventually exit the Healthcare Industry. 

My only experience with RE so far was the purchase of our primary residence in the Forney, TX area (which seems to be exploding) back in 2011. I would really like to look at owner occupied MFs for our first property to live in and rent out the other units while we complete renovations on our primary residence to eventually rent out as well. Does this seem like a good strategy? What are some good VERY FIRST steps to take?

I have recently reached out to some RE agents to begin looking at properties in the DFW area. So far from my search, the market for MFs seems to be very competitive. Should we maybe not focus solely on MFs at this beginning point? Is it wiser to be more open to other types of properties in the beginning? 

Any input, experience with MFs/DFW MF market, words of encouragement/caution (I'm sure that there are a lot of things I don't even know that I don't know yet), things to look out for or do differently very much welcomed. Currently taking a RE PreLicensing course to learn as much as possible. I'm so excited to get started on this journey and to get our first (second?) property under our belts!

[Alex Grosvenor]

Hey Lola! 

Coming from my experience getting my license here in DFW the RE PreLicensing course doesn't really teach you anything about how to do any real estate deal none the less a deal for investors. It will teach you about contracts though if that is what you are looking to understand. 

House hacking is technically what you're talking about by living in one multi family unit and renting the other units out. The MF market here is very competitive because everybody is trying to do the same exact thing you are trying to do. You could also house hack by getting a 4-5 bed house and living in one room and renting the other rooms out. Getting a house that has a back unit mother in law suite or apartment dwelling in the back and rent that part out to someone. 

Either way either one may or may not make you some cash flow or maybe just cut your rent down $500-1000 which I would still say is cash flow because you're saving that money you would be paying on rent. So don't get caught up too much into the whole I want to cashflow situation because saving that money on rent is just the same. 

Your RE Agent should be an expert in investing as well and able to tell you everything that I did and more. Use them to your advantage. You may not know about RE or investing, but if you are using them then they should. If they don't then it's probably a good time to find a different real estate agent. 

I wish you and your husband the best of luck on your journey! Good Luck!