All Forum Posts by: Daniel Oh

First, HUGE respect for thinking like an investor at such a young age! As a mom of 3 boys, I love to see young people tackling their future with energy and vision. House hacking is always a great way to start. It might be tough in your environment just because rents are so high, so maybe look in a community just outside of where you currently are to try to find something a little more affordable. You just want to make sure you can cover your mortgage, and young people are being particularly hard hit by COVID unemployment so you want to make sure your roomies can continue paying their rent. 

@Daniel Oh

I'm in the same situation as you brother,

My suggestion (If you're really serious about investing), would be to look into wholesaling or house flipping to start building up some capital and rapport first before tackling rentals. What I've found with the concept of flipping; you'll gain some insight to how all the functions of a house work and then when it comes time to be a landlord, then you know more of what you're getting aside from tenant screening. 

Have you listened to any of the BP podcasts? Regardless, I highly recommend episode 371

Whats your monthly income, and how much cash are you sitting on?

I wouldn't say that's entirely unethical, but if you could find someplace on the lower end of your mortgage scale then it would be more ideal. Rent should ideally be a little more expensive than how you have it set because you'll have to take into account CapEx, taxes, utilities, and all the other fun stuff that comes with ownership. If this were an idea solely just for a new living environment, I'd look for a cheaper deal in where your roommates will pay off everything.

You're in the right mindset though, I can relate to what you're trying to do. However you also have to consider what you're going to do when your tenants move out at the end of their one year lease, and how long it may take for you to find new tenants that are suitable to your standards. 

Like you, I wanted to move out and have a space for me and a couple friends to stay as well, but I realized that everyone has their own paths and intentions in life. At our age, I think it may be best to stay at home for a couple more years to build up capital first.

Hopefully that helps!