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Updated about 7 years ago on . Most recent reply
Where and how to best invest in DMV (D.C., Maryland, Virginia)?
Hello, new here!
I heard real estate was one of the best ways to generate passive income. Specifically, accumulating rental properties throughout life. My goal would be something $10k/mo passive income before I'm an old man, and I'm currently 25 yrs old.
So what I'm working with here is a $100k+ salary. I'm going to spend 2018 learning as much as I can about REI and saving for my first downpayment. From what I've read so far, it sounds like the cool stuff such as apartment complexes in Washington D.C. are completely out of my reach, haha.
What areas, unit types, and method of REI do you all suggest for someone like me? I've heard my home of Northern Virginia is not the best to cash flow rentals.
Feel free to shoot me a message if you want to help a newbie out! I've noticed I usually fail the 1st time I try something new, so any guidance and advice is sincerely appreciated. Thank you. :)
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Andrew
Congratulations on your great start. 25 with a 100K job is fantastic.
If I were you, I would spend time getting a house using as much other people's money as possible. If you're a first time homebuyer, use FHA, VHDA or Fannie Mae's 97% loan to value program to get my personal home. If you can find units, buy with FHA and get the property with 3.5% down or go with Freddie Mac's 95% home possible program.
I'd live in that property for 12 months or more and then get another one, living in it so you get the best personal financing possible.
Once you've accumulated a few doors and because that will take a few years, you'll have time to accumulate some savings, then start with larger properties that are investor properties, possibly in other municipalities or states because around here, the cost is prohibitive.
By the time you're 35, you'll have about 15 properties and you'll be well on your way to accomplishing your goal. Don't let anyone or anything get you off task and you'll be fantastic.
Congratulations
Stephanie