All Forum Posts by: Account Closed

Hello and welcome @Account Closed! I'm very impressed... you're 21, sounds like you may have little-to-no-debt, some money in the bank, going to school and working a job - wow - it seems as if you're a minority among peers of your age - well done!

Youth have the added bonus of time - use it to your advantage!  Acquiring your first secured loan will help you build credit, so if you can get a loan that you can easily handle, then buying your first home is a great idea in my opinion.

If you're so inclined, research buying an owner-occupied small multi-family property using an FHA loan... for as little as 3.5% down, live in one and rent out the other(s).

On that note, to be specific about your question as to where to start... you already did by joining this site.  Immerse yourself here and learn, learn, learn.  Real estate is a huge industry with so many ways to go... figure out yours through learning and persevere!

All the best to you - good luck!

Hey @Account Closed,

Welcome to BP and congrats on your first post!

Firstly, I believe getting educated about REI and specifically flipping is your best initial course of action. J. Scott came out with The Book on Flipping Houses which was publish by BP. There are several other great books that can be read on flipping, and a myriad of forums discuss it on BP.

That being said, flipping can be one of the more difficult REI avenues to get started in, especially if you do not have a construction background. My recommendation would be to purchase an outdated property in a good area of the city for a live-in flip. Your holding costs would be minimal as you can leverage a low interest owner-occupied loan. Additionally, you could finance your rehab in with your loan with a product like a 203k loan. Finally, holding the property for a year would allow you to avoid the short-term capital gains tax. You could also roll the profit into your next property to avoid having them taxed.

-James