Hows it going everyone, first off I would like to say that I am completely new to real estate investing and I have come here for help.
Some basic things about me:
- I am 22 years old
- I am a 4th year electrician in the oilfield and am 3 months away from being a fully pledged journeyman. I am not doing this as a fulltime job though because I hate it, so I will be doing a trade in painting. I will make 20 dollars an hour starting off as a painter. I also will be moving to a bigger city for more opportunities since I live in a small town.
- I currently have 150,000 saved up from working
Question 1: How should I go about buying my first property?
I live in Alberta so a 5 bedroom house goes for at least 275,000-350,000 and it will be a 5 bedroom, 3 bathroom. I also looked and half duplexes go for 250,000-275,00, these will have 4 bedroom and 2 bathroom. 2 bedroom and 1 bathroom on top and 2 bedroom and 1 bathroom on bottom I believe.
I have 150,000 saved up so I was thinking of buying 3 houses for 275,000 these would have 5 bedrooms in it. Or I was thinking of buying 3 half duplexes.
I also will not be managing any of these properties I want to go strictly to a property manager and have them manage them for me, yes I know they will take around 8-10% of the gross income, but I am okay with that as long as I have to do no work and don't have to look after anything. The reason isn't because I am lazy but because I want to work as well and have more positive cash flow, would be extremely hard to manage it and work 80-100 hours every weeks. So ya what should I buy half duplexes or single family home? thank you
Another question I have is this: If I buy a 5bedroom house, would the property manager rent each room out to different people or would they simply just charge a family say 1,500 or 2,000 to live in it a month? this is what I am concerned about, because if they rent each room out, they could charge at least 700-800 dollars because that's why the going rate is, but if they wont charge each room out for say privacy reason or safety reasons, than I would be better going with the half duplexes at 250,000 because than I could have 2 people rent the top and 2 rent the bottom and charge 1200 dollars for the 2 people on the top and 1200 dollars for the 2 people on the bottom.
Just curiousm I know each property manager is different, but what do you think would be the best thing to buy a half a duplex or a single family home?
And how much cash flow do you guys honestly think I could make a month from each. Thank you for reading this, I know I am a complete beginner to real estate investing but this has been my goal for the past 2 years and I finally want to do it, thank you so much everyone, please point me in the right direction:)
