All Forum Posts by: Will Sutter

Will, 

Welcome to BP!

Sounds like you're in a solid spot. I concur with the investors above that house hacking is the highest recommended strategy for new investors. I'm right there with you as this is the strategy I am pursuing. 

Look for a SFH that you can rent by room (if that's something you're comfortable with doing) or find a 2-4 unit and do it that way. Fannie Mae is rolling out a program on November 18th for owner occupant 5% down loans on these kinds of properties. It is more than likely that your property won't cash flow in this market but the goal is long term wealth building. After some debt paydown and rent appreciation, you'll have a cash flowing property.

When you're living there, compare the amount you're paying for the property each month to the amount you would be paying if you were renting a place and living by yourself. You might not cashflow but after having units rented I guarantee you'll be spending less or close to what you'd spend on rent. And now you have a legit asset. 

I assume that you have some sort of income history since you've been able to saved $35k but lenders do look for consecutive years of income to qualify. Being in school can nullify this but just talk to some lenders in your area. 

 I totally agree that it isn't about timing the market. Get in the game when it makes sense for your situation and when you're ready, don't hesitate to do it. 

Start networking with other local investors in your area and go to REIAs/meetups. Check out Meetup.com or add keyword alerts in your settings on BiggerPockets for "houston meetup" or "houston reia" something like that. 

Wishing you the best! 

Hey @Will Sutter, you will probably see this sentiment across BP but house hacking is one of the best ways to get into real estate. It sounds like to are in a pretty good position to be picky with where you are looking and are willing to move. One of the best things you can do is develop a plan for your end goals as well. Make sure that each one of your moves is impactful on getting to where you want to be. 

All the best on your journey! 

Welcome to Bigger Pockets! You have come to the right place to learn about real estate investing. I highly suggest house hacking as a great way to get started. Find a property where you can live and also rent out out a portion of it. For example . . . a duplex (live in one side rent out the other), a house with multiple bedrooms (stay in one bedroom, rent out the others), house with converted garage or guest suite (live in the smaller unit, rent out the main house or live in the main house and rent the smaller unit). Use your savings for a low downpayment (3.5% or less) on an owner-occupied home. Interest rates will be more favorable than a non-occupied home. Live there for at least a year. Then move out and look for your next house hack. Best of luck!