Quote from @Hansel Gunawan:
Hey, my name is Hansel.
I'm looking to buy my first ever property for investment so I can achieve financial freedom sooner in my life!
Many articles/youtube videos/posts said that Multi-Family property is the right thing to do to build my empire. Is that true?
If so, which city/area should I start looking? I live in California right now where the price is insanely expensive! I don't mind looking in other states too.
If not, what is the better strategy for first time home buyer like me? BRRRR? House hacking?
Please, I need guidance on where to start!
Hansel,
Multi family, 2-4 units are one of many proven ways to become a real estate investor, create passive income, and build wealth. Many of us have accomplished this task, most beginning with a house hack. Location matters, why? Because the rent of the units must cover the mortgage of the building. Consider the price of a 2 family flat for example: price 400k, that mortgage @ about 7% interest rate will be about 2200-2600 p/m. The question you must ask is will the rent of the other unit cover the mortgage. If you qualify for a FHA loan your down payment (3.5%) will be less than if you decide to BRRRR (non-owner occupied - 20%). You may also want to check with a local mortgage broker for 1st time home buyers programs. I know here in Georgia, they vary by county. I applaud you for taking the most important step - that is making the decision to take action! Here's a few more tips that may also be helpful.
To Your Success!
