Hi Y'all,
I am 23 and been working a 9-5 for a few years now. I have managed to save about $20,000 and I do have friends and family that would like to "invest in me" as well. I would LOVE nothing more than to quit my 9-5 and start investing in real estate. I live in Brooklyn, NY.
I am looking to purchase a single family home where I will be cash flow positive. Wherein the rent roll will exceed the monthly mortgage and expenses (insurance maintenance taxes etc). Price appreciation in the property would be an added bonus but not part of my NOI calculation. I am looking to garner returns at about 10%.
I know that, that is quite challenging in New York. I spent some time looking at properties in Brownsville NY where it seemed like their may be some viable options. Additionally, based on my limited knowledge it seems like the experts on bigger pockets recommend starting with a home under $200,000 for a first time real estate investor.
One of my biggest concerns is this article I recently came across on Investopedia, which seemed to indicate that you need to use the 50% rule. I.E. if the rent you charge is $2,000 a month expect to pay $1,000 in expenses.
I don't see how I can ever be cash flow positive let alone a 10% return if I need to factor in 50% of the monthly rent for expenses.
All and any help/tips would be much appreciated!
