Hey Colin, it’s fantastic to see someone your age diving right into the real estate world.. reminds me of when a buddy of mine bought his first duplex in Omaha. He was working full time too, but the excitement (and nerves) of closing on that property had him checking calulations day and night. You’ve already got a head start with hands on experience.. and you’re probably way more prepared than you think.
That first property can feel both exhilarating and terrifying, so here’s what I’d focus on:
Cash Flow & Analysis.. Before you close, can the rent from your buddy and the midterm tenant cover your mortgage, taxes, insurance, plus a bit extra? Also, from what I read in Bloomberg, midterm rentals near major hospitals can sometime command a decent premium.. especially if they include some nice furnishings.
Little Tweaks Count: Even minor upgrades, like new door locks or a fresh coat of paint, can help you justify a stronger rent.
Driving for Dollars & Networking.. A good investor friendly agent typically does “driving for dollars,” from what I’ve heard, and they might have a direct line on off market properties.
Eyes on the Future - At 19, you can stack up quite the portfolio over the next decade. My frind in Omaha ended up picking up his second property sooner than he expected, simply because he’d built a small name for himself with one successful deal already under his belt.
Are you feeling confident about the day-to-day responsibilities, or is there something else in the process that’s keeping you up at night?
