All Forum Posts by: Xavier Burgos

Quote from @Michael Dumler:

@Xavier Burgos real estate is used as a means to hedge against inflation. With that being said, real estate is localized and dependent on several other conditions and factors such as inventory, building costs, supply chain issues, etc. Everything in real estate and economics specifically has tradeoffs. Those individuals paying 5 to 6 figures over asking are most likely doing so in extremely high demand and sought-after areas, hence, why someone like yourself needs to target markets that may not be as in demand but have potential indications for experiencing future growth. Furthermore, this is why newer investors need to start getting creative with their strategy. If you're analyzing 2-4 unit house hack deals that are being outbid by cash buyers you're wasting your time and energy. Instead, start looking at house hacking strategies such as renting by the room or properties with in-law suites that can be used as a separate LTR or Airbnb. That's my two cents, and what I'm seeing in my market at least. Hope this makes sense and helps! 

 I agree 100% with these strategies. Especially the rent by room. I'm starting to dig deeper into this one through BP podcast. Do you suggest getting a mentor or finding someone to personally advise me through the first rental property process? 

Hello BP community. Ive recently written multiple post on here and received amazing feedback. As the world goes on during these crazy times. We see inflation rapidly increasing, the prices of homes sky rocketing. Causing people to pay over top dollar for homes. Being someone that as of now is in the learning process of becoming a real estate agent as well as an investor. I am on the sideline watching people paying ridiculous amounts over asking price. Especially in the competitive market I am in (New York City). Im curious if inflation can be the cause to the end of new real estate investors? How can someone like me so young with little networks be able to compete with people paying 5 to 6 figures over asking price? Does this also mean if inflation proceeds to rapidly increase, will the house hacking strategy still be able to be used? It seems nearly impossible for someone so young to be able to build capital and even find the right price for a rental property to get their foot in the door. My question to you, the read, is inflation the new fault to upcoming real estate investors? As well as inflation killing the house hacking strategy in competitive markets? Thank you for taking the time to read this post and looking forward to the feedback and your opinion.   

THANK YOU!

Hello BP Community, 

   My name is Xavier, I am a 19 year old future investor in NYC pursuing my Real Estate journey. The more I begin to obtain knowledge about real estate I begin to learn more and more about different fundamentals about different ways to invest in real estate. Majority off the people I explain my story to suggest looking into wholesaling. Ive never looked into wholesaling as I want to become a rental property investor. The problem is getting the funds to even put down anywhere from 3-5% down. I don't have $10-100k to put down for my first rental. Not knowing how to gain more income besides my W-2, its going to take me years to be able to invest into real estate. My question to whomever is reading this "Is wholesaling the best way to get started in real estate?" Is this the best way to gain capital and experience to be able to understand and invest into this market? 

- If this isn't the best choice to get started, what are some of your recommendations and how did you get started? 

Quote from @Ben Lin:

Hi @Xavier Burgos

Good that you're thinking about investing and house hacking when you're only 19. I wish I started investing in RE when I was in my 20's. With your mind set and hard work I am betting you will be a multi millionaire in the future. You're definitely not too young to invest into a rental property.

NYC is such a big market with so many sub markets. You have to find out where you want to invest and househack. Is it in Manhattan, Brooklyn, Queens or Bronx? Then there are so many different sub markets in those boroughs.

OFC the best is to save 20% of the purchase price. So if your purchase price is 1M, then you would need at least 200K. There are many other financing options for you. I would highly recommend you watch Biggerpockets youtube video where they interviewed Pace. He talked about creative financing and the info he gave in that episode was all gold, especially for young people like yourself.

For me personally NYC is the best market to buy in the US right now if you have the money. Why? Because prices have not increased and in some areas prices are even lower than 2016-2019 market, while the rest of the US are seeing 25-40% increase in prices. And with inflation at 20-25% you're basically buying NYC properties at 35% to 40% discount inflation adjusted if compared to 2016-2017 prices. 

Lastly this pandemic will end one day. We just dont know when, but it will end one day. Probably by the end of this year or mid way next year? And when that happens guess what? People will flock back to NYC because NYC is the greatest city on earth and it is also the capital of the world. Any NYC broker will tell you that people are already starting to move back to the city, that's why the rents are going up and selling prices are inching higher everyday. NYC is like Paris, London, Moscow and Shanghai mashed into one city LOL. Who doesn't want to live there? 8 out of 10 people want to give NYC a try. If you can make it in NYC you can make it anywhere - Jay Z LOL.

Good luck to you. Keep working on your credit score and income. Maybe add one or two income streams if you can. While you're young you should try to save every penny and live as frugal as possible so you'll have some money when opportunity knocks.

Man thank you for their reply back, it was nice to read this and definitely a huge help and different perspective. Thank you so much for the suggestion. Will definitely give it a try as-well as keep in contact with you. 

Thank you sir!  

hope to learn more! See you there.

Quote from @Ray Lin:

It's great that you are looking into real estate at such a young age. I wished I did that. Anyway, my recommendation is to start saving and eventually become a homeowner so you don't have to be a tenant. Once you're a homeowner, you can rent out the rooms or parts of the house and have your tenants help pay your mortgage. How much to save? Maybe about 10-20% (about $50,000) for a down payment, depending on how much is the purchase price. I've been looking for something in NYC for the past 10 years and haven't really found something I like. But I'm still looking. Try to buy your first home, then look into rentals.

Im beyond eager to get started in this real estate world, I sometimes feel like im late in the game even though i'm only 19. But yea, i'm planning on house hacking my first rental property and using a FHA loan to be able to help assist me. The market in NYC is sky rocketing everyday. So I'm not sure if I should invest in my market or look somewhere else and move from home. Also 50k seems like a lot of saving for someone my age but in this market I don't disagree with you.

Silly Question that can hopefully get answered. I am 19years old working a minimum wage job, how much money should I save to invest into my first rental property in the city? Along with using a FHA loan and hopefully being able to put down 3.5-5% down.

Hello Bigger pockets community, my name is Xavier and I'm looking to start real estate as well as real estate investing. I am currently working a W-2 job to build proof of income as well as building my credit. Im very interested in the concept of "House Hacking." Ive read and currently am reading books on how to invest into rental properties as well as what is needed to do so. With me being so young (19years old) as well as living in an expensive market (NYC), I'm curious on a few thing and hoping whoever reads this can helps me.

1. How much should I save for a rental property?

2. How much did you save and spend on your first rental property?

3. Is the market in NYC worth investing in, regardless how expensive it is?

4. Am I too young to invest into a rental property?

Hello Bigger pockets community, my name is Xavier and I'm looking to start real estate as well as real estate investing. I am currently working a W-2 job to build proof of income as well as building my credit. Im very interested in the concept of "House Hacking." Ive read and currently am reading books on how to invest into rental properties as well as what is needed to do so. With me being so young (19years old) as well as living in an expensive market (NYC), I'm curious on a few thing and hoping whoever reads this can helps me. 

1. How much should I save for a rental property?

2. How much did you save and spend on your first rental property?

3. Is the market in NYC worth investing in, regardless how expensive it is?

4. Am I too young to invest into a rental property?