Quote from @Scott Mac:
Quote from @Kenneth Lewis:
My name is Kenny and i'm 21 years old. I've always been a money-knowledgeable young man; credit (760 score), stocks, roth ira, 401k, etc. My next goal is to get my first rental property before i turn 24. I just started watched a lot of videos on BRRRR, house hacking, and whatnot on Bigger Pockets. I personally do not have the funds to put a down payment worth 25%, but i do have family that may be able to help me if i can actually find a deal and can explain it to them if it makes sense (my mother mostly likely and my grandmother!) I am really driven to get properties, but just figuring out the market i can target. I go to school in Orlando and my mother lives in Fort Lauderdale, which i think are really good areas to invest I THINK. Mind you, my mother has never had a house yet, so when she does get one, it can maybe be a duplex or whatnot (just a thought). What are the steps for me to get in real estate investing?
Find out what you need to do to Get a loan. Do not pay to be approved yet, just find out.
That will tell you what you need to be, credit and job wise, and how much you can buy.
Look to buy something where the rent coming into you is more than the cost of owning it, which will include taxes and insurance, and downtime between renters while the unit is turned, and sometimes roof replacement, etc...
There are calculators on this website, and more information on the website about how to do this mathematically.
This is not a charity game . You will need to be a good property manager . Need to learn this and learn the laws of Florida regarding this as well as the federal laws . You will also need to be interpersonally businesslike with people . You must collect the rent every month .
There are books available on this site about property management and also a good book you might want to read is Property management for dummies.
In Florida a big alligator on Real estate can be the insurance costs, and roof replacements.
So talking to an insurance person about these things, which may have different costs in different cities, would be an intelligent thing to do.
You will need a lender to make the loan. So finding a lender and then finding out what needs to be you,,, for that loan to happen.
I mean some loans require you to have a certain net worth. Some may require you to live in the property. Some may require you to have a certain amount of experience or in place of that have a certain amount of cash cushion available called reserves. And these reserves could be in addition to repair and replacement reserves that are required for the loan also.
You will need cash for your earnest money when you make your offer. Ask a local realtor how much this should be based on the current market in the area.
You will need cash for your closing costs. Ask a local realtor in your market what closing costs are normally paid by the buyer.
You will need title insurance- if you do not know what this is- study up on it- it's very important.
You may need to have survey performed on the property that might be paid for by you or by the seller or it may be common practice in the area for particular person you to pay for it. Talk to your realtor about this.
That's a pretty big chunk of stuff to do and learn, and you'll probably have a million questions about things you discover while studying these things.
Good Luck!
