All Forum Posts by: Scott Baker

Awesome man, I just sent you a message but I'd love to get together the next time a group does so.

 Trevor,

Thanks for the reply. I plan to run some more numbers and have a few meetings with fellow REI's in the area but I'm leaning towards the 2nd option. I shouldn't have much issue renting out the extra rooms and if I were to move, I don't see much issue renting out the unit. I would buy in a very popular area (where houses for sale and rent are being snagged within a week at most). I do have a tendency to let the extra money inflate my lifestyle.. Case in point: I bought a very nice boat straight out of college. I don't regret it one bit, despite being in debt for it. Gotta enjoy it while I'm young and single right? ;) That being said, it's a goal of mine to have it paid off much quicker than the loan via REI. Aside from that, I am very diligent about paying myself first and making all cash savings/investments come before any bill, monthly expense, discretionary spending...etc.

All,

I'm new to the forum and have been doing lots of reading and talking with friends/coworkers that have already begun their real estate investments.  I'm looking to do the same within the next year.  I'm 23 and make a very good salary but I have moved around for the past 2 years.  I'm now settled in OKC and will be here to stay for a while, at least a few years.  I'm currently renting a house with 2 buddies.  After next August, I'll have somewhere around $30k to invest with.  I could have substantially more if I have liquidate some stock investments and reduce how much I contribute to those.  The current lease is up in September of next year.  I see a few options and I'm trying to understand which route is the smartest.

• Don't buy anything until September, try to save up for a conventional 20% loan and buy my first primary residence.  I would look in the $225-$325k range.  I would have to liquidate some assets but that would be acceptable to me as I would buy a 3-4 bedroom and rent out the extra rooms.  A few of my buddies currently do this and it works out well.  I would then continue saving until I can afford 20% on future investment properties.  I would likely start with much cheaper homes- <$100k.  I also have a friend who is very serious about this as well and is interested in going in together.
• Do the same as the scenario above but instead of a conventional loan, put 3.5% and go the FHA route. I like this option as it leaves substantial cash and I could buy 2-3 rental properties with 20% down conventionally quickly (I'd start with 1 for 3-6 months). I would live in this house for at least 12-24 months as it's required before I could move out and rent it out.
• Don't buy my own house yet and focus on acquiring a few income properties first.  If I don't buy a primary residence, a buddy of mine will and I could have very cheap rent (~$600/month).  However, I do see a house of primary residence in my relatively near future 1-5 years unless I move cities/change jobs before then.  I haven't done any serious calculations with this, but it would take a fair amount of time to save enough for 20% if I were to go conventional on primary residence.

Any insight is greatly appreciated.  I look forward to reading and learning more from all of y'all on BP.

Scott