Hello,
I could use some advice as what to do next. I have one week to make a decision to take a promotion or not and start my real estate portfolio, or wait 3+ months and then take the next good opportunity.
I am 26 years old currently living in Bismarck, ND. I just finished paying the majority of my debt off(I owe 4k on student loans). I have been presented an opportunity to take a promotion and a 5k relocation bonus to move to Rogers, MN. I have rented my entire life and want to buy a multifamily unit and househack. I have one week to decide. Here is my situation and plan of action, any feedback or advice is appreciated.
Situation-
Start working and live somewhere by February 1st
Assets by February
Money down: 1.5k
-401k loan up to 6k
-20 Shares of VOO ~5k
-ability do an FHA loan
By March
Money down: 1.5k
-401k loan up to 6k
-20 Shares of VOO ~5k
-5k Relocation bonus by March
-3k Back after tax returns (around March)
-Ability to do an FHA loan
Here are my 2 options as I see it-
Plan of action:
Option 1: Put in my 60 day notice - worst case scenario I pay 2 months of rent where I currently live + rent/Mortgage in Rogers( I can afford to do so if necessary.)
** Unsure of the best order, but I will attempt it.
-Reach out to my bank and other banks to see if I can qualify for an FHA loan
-Reach out to a local real estate agent (talk to at least 3)
-Reach out to a local property management company(talk to at least 3)
-Reach out to local contractors
-Find a good CPA
-Lawyer?
-In the meantime start analyzing any multifamily units close enough to work for me to househack. Just got a PRO Membership to take the commitment of this or the next oportunity.
Option 2:
-Save until I can put a full 60 day notice with no risk
-Find a new location and be about 3k more prepared fincially and have no risk of having to pay at two locations (Ideally April)
-Repeat option 1
Audio books read once:
"Set for life"
"Richest man in Babylon"
"The Book on Investing in Real Estate with No (and Low) Money Down"
"The book on Rental Property Investing"
"Long distance real estate Investing"
"How to invest in real estate: The Ultimate Beginner's Guide"
I can afford to pay for worst case scenario, but this would be my first deal that I wanted to do by the end of 2019 anyway, this would just jump start that to today, with a little more risk (I feel slightly nervous and unsure, but this would be my first deal and I think it is because I have not taken the first step yet.)
Thank you for taking the time to read this.
