All Forum Posts by: Solomon Nguyen

First off very well done! Seems like you have a million ideas and things you want to accomplish, I would start with one. Being scatter brained will make things difficult to get done. I would first focus on being an agent and building that business more. From there I would add 1 new idea. From what you mentioned doing a PM company would be the most valuable. The income it can produce and the networking would be worth it. It will take time to scale but that will take a majority of your time as you get it off the ground. During that time I would save and look for a house hack, might be a year or two down the road but you are 21 so who cares. 

It sounds like you’ve put a lot of thought into your options—great job weighing each strategy. With your savings and experience, the Midwest could be a strong starting point. If you go this route, try to pick a stable market with at least some growth potential. As for the family project, if you’re okay with a smaller return in exchange for long-term value, it’s worth considering. Keep networking and building your local presence—it’ll pay off in the future. Feel free to reach out if you have any questions- I’m always looking to help where I can

I agree with what Tim and Sam said. Can you do this alone? Yea probably. The cool thing about the RE community is that everybody is willing to teach. If you could find a solid business partner, network, make connections. It makes a world of a difference

I'm an agent in CT and i happened to join my mentors team, The amount of stuff that I've learned by just being in the same room as these guys is crazy. Not to mention trying to figure all of this our on your own. You can lean on them, ask questions, and figure out things so much faster. A small slice of pie is better than no slices of pie.

What I am hearing from you is Me and I.  You are embarking on this alone?  Get a partner (s), that's my advice.  You are in a popular group that thinks you need to own 100%.  You'll do so much more in a team.  I've owned over 350 rental units. Only 2 I've owned on my own. I'd rather own a percentage of a lot rather than all of a little.

@Solomon Nguyen

I'd invest that cash out of state and get some good cash flow going. I'd buy a few SFR with 20% down. I bought 10 SFR out of state in the last 10 months and they're easy to self manage from a far.

@Solomon Nguyen

Congrats man!! Good for you. It sounds like you have a lot of good stuff going on. 

If you can house hack locally, that's almost always the best way to get started (in my opinion). 

The more uncomfortable you're willing to live, the better the numbers will be. 

If your brother doesn't help with co-signing, I would suggest purchasing your own property. If you've an agent and PM there, you can definitely find a better deal. 

Don't expect to hit a home run out of the gate. Consistent singles and doubles add up significantly over time. If you swing for the fences, you may strike out. 

Best of luck to you!

@Solomon Nguyen Hey Solomon! First of all, you're doing great! I certainly did not have that much saved up by 21. I've been investing since 2015 and just closed on another investment property last week in RI (federal hill specifically). I'm curious on why you wouldn't be able to afford a multi family property. I recently bought a $1,250,000 property and only had to put down 5%. You can also go with FHA and only have to put down 3.5% (both are owner occupied loans). You have the cash. If it's matter of income, make sure your lenders are including part of the rental income. I've seen this around 75% of all rents. That should be contributing towards your income. Do you earn a salary at your property management company? Happy to talk further if you have any questions. Seems like you may just need to find the right lender!

Hey @Solomon Nguyen - go start the PM company first and then invest locally.

I started my real estate journey about 13 years ago buying my first SFR in Connecticut. All of my purchases were from the MLS. Six years ago, I quit my job and started a PM company. To be successful in PM, I started cold calling, going to meetups, and meeting every person affiliated with real estate that I could. This led me to make connections. Now years later, I rarely, if ever, buy real estate from the MLS because of those connections I made. I just partnered on a owner financed property ($1,000 a month principle only for 10 years with a $60k balloon), and do flips with another partner whenever we can find the opportunity. I am also negotiating a "Subject to" property with one of my existing clients.

If you can get legs on the PM company (get to 200 to 300 units quickly), you should be able to have enough cash flow to be able to fund your purchases.

If I were to do anything over, I would have quit my engineering job sooner and started in property management.  I now make more money with more opportunity and I'm able to do the things that I want to do each day.

 The option to go in with your parents to convert that building seems like a good idea based on the fact that you have cash flow. If you can work with them on it, write in your agreement/contract about the equity you get in the property with rights to sell your portion whenever you want. So that way you have ownership AND cash flow. 

If you decide against that and invest OOS, I recommend looking in the Cincinnati/Northern Ky market. I have many clients who love the properties and numbers they get. Leveraging debt would be best, not cash (in my opinion). Let me know how I can help you best here!

Hi Solomon,

You’re in a strong position with solid real estate experience and savings. If local prices are too high, exploring Midwest markets is a smart option. Properties there are more affordable, allowing you to make a significant down payment or even pay in cash, which could get you started sooner. Just make sure you have a solid management plan if investing remotely.

As for investing $40K in your parents’ home, while it could provide a modest return, it may tie up capital better used for your own investment where you have more control and equity.

Your plan to start a property management company in Rhode Island is a great long-term move. With your experience, it could open doors to more local opportunities, so balancing saving for that while looking for the right investment is key.

If you need help with financing or further strategy, feel free to reach out!

Best,
Drago