All Forum Posts by: Zach Perry

Agreed, definitely a fan of researching things, preparing etc. But taking action is also vital. Buying a SFH and house hacking it is extremely informative, and if it doesn't work out, then hey, you have a place to live at least. I house hacked my first purchase (rented out a bonus room), and now I'm moving on to the next SFH soon. There's no substitute for getting started, you'll learn a ton. Just make sure to have a rainy day fund. Also run your purchases and strategy as a business (you should have criteria, a plan, mentors, etc.). Build your team, and all that good stuff. On my profile, I have listed a variety of books and resources I use and read, some of those are probably for free at your local library. There's also invaluable resources and expertise on Bigger Pockets too. SCORE is also free too, and a superb resource: https://www.score.org/find-men.... 

Hi Zach! I am 23 and bought my first property at 22. Starting at real estate at this age is life changing so I commend you for wanting to take the leap. If I were you I would expand your horizons to look at things other than a duplex. Ask yourself what you like about a duplex. I imagine you like that you can house hack it and live in one unit while renting out the other. The good news is that there are so many other ways to house hack. Look at single family homes where you can maximize the number of bedrooms/purchase price and rent out each room individually to young professionals or grad students in your area. Look for properties with a basement you can finish for extra rooms or somewhere that an ADU can be built, or a garage that can be converted into an ADU. Maybe you do an STR/house hack to provide enough cash flow to make the deal work. There are always deals to be made, you just might need to get creative! Feel free to reach out if you have any additional questions.

Take action, example, if any down payment money that you may fear to lose for making wrong decisions, do just that. (suggest if 22yrs old, single go for SFH, and house hack it, year 2 go to the next)

The secret sauce is go do what you fear not to do. You will see the bigger picture in few months or years down the line, and when you do you will still realize oh snap! glad I did those mistakes and still have time for profitable decisions moving forward.

Action! Move! Get going! Just do it! Yesterday you said tomorrow! and tomorrow is Today!!!!

No one will get you out of paralysis other than yourself. If I were you I wouldn't admit it again, tell everyone you're a real estate investor then ask the question. Plant it in your head. You can find duplexes by setting up a simple search on zillow of multifamily 

Hey Zach,

I'm a local investor in Raleigh as well. I would recommend joining NC Real Estate Investors Association, linked below. They put on a number of events and meetups throughout the month, I go to a number of these myself and are a great networking opportunity. There's also a lot of facebook groups regarding Raleigh & NC RE investing and offmarket properties. Feel free to shoot me a message and I can send some of those over.

Regarding duplexes you're right, they're few and far between and the ones that do get listed will demand a premium and likely not make a good first time investment property. If you're purely focused on duplexes I would broaden your search to Garner, Knightdale, Durham, Zebulon etc. Even if you go the off market route for duplexes in Raleigh, most owners aren't dumb they know the market, it will still be very tough to find a decent deal on a duplex in Raleigh.

https://www.ncreia.com/

I would walk up to the edge but didn’t actually take the plunge until somebody pushed me

@Zach Perry house hack a 4 family ! Thank me later. Go get em!

The fundamental problem, as @Tiffany Alexy pointed out and you already opined (although it is fact), is that the number of duplexes in the Raleigh market is small. In the past five years or so the duplex market has been able to command a premium. My view is that 0.2% of residential property is duplex per my analysis from several years ago. I couldn't find substantial duplex infill development recently from 434,294 Wake County records. You are looking for a needle in a haystack. One option (mentioned in other comments) is to try another market. Another is to try alternate investment asset types as Tiffany suggested. 

Seems like a key point: "when analyzing it, it's not worth investing in or it's too expensive..." 

My only other comment, and I will push back a little on some of the other posts, is that when you become a motivated buyer, you put yourself at a disadvantage. Real Estate is a capital-intensive business and buying just to 'do a deal', to me, can be a big mistake. I saw LOTS of 'investors' in 2005-2008 who were (or became) motivated buyers, ultimately face the harsh reality that the market isn't kind to bad financial decisions. As a courthouse buyer, I saw it first-hand. I would recommend not buying expecting to make mistakes just to learn from it. To me, this is bad logic. Investments are meant to contribute to your financial well-being, not detract. You are 22 and I would suggest you buy a primary residence first. Learn RE from taking classes, like the real estate commission teaches. Read and invest your energy in the North Carolina Real Estate for Brokers and Salesmen book that the RE commission used for their classes. Know the fundamentals. It's an investment you won't regret. 

Related

my Feb 22 2018 post in Looking for multifamily duplex/fourplex
my Oct 15 2017 post in Is Raleigh a good cashflow market?
my Aug 12 2017 post in List Source Returning Small Numbers

@Zach Perry- thanks for the post   1)  get  formally  pre approved  in order to educate yourself  regarding present rates /  and  numbers   2) to make sure you have a loan / financing in place  ...without a loan - its tough to take the  next step ...good luck and let me know if you would like a loan officer  referal for your area

This can be a daunting prospect, but it's important to remember that every rental investor has had to begin somewhere. Even the most experienced investors have made mistakes in their first deal, so don't let that discourage you. It's often said that your first investment will be your worst because you'll learn the most from it. But by taking the plunge, you'll gain the knowledge and confidence to identify potential opportunities in the future.

Making that first investment can be an intimidating task, but it's important to remember that there are resources out there to help you succeed. There are numerous books, courses, and seminars available to help guide you through the process. Additionally, many experienced rental investors are willing to offer their advice and mentorship as you get your feet wet. Taking advantage of these resources will help ensure that your first rental investment is a success.

The key takeaway here is to not be afraid to take the plunge and purchase your first rental property! With the right tools, knowledge, and mentorship, you can make sure that your first investment is a successful one. Don't forget, even the most experienced investors have made mistakes in their own first deals--so don't be discouraged. With enough preparation and dedication, you can make sure that your first rental property proves to be profitable for you! Good luck on your journey into rental investing!