Real Estate

by Curiousspeed444. Posted on Sep 11, 2020    2    7


Hello

I am 22 years old and have always wanted to invest in real estate i work at a mortgage company i save up i keep my credit score high and i always look at the market and analyze properties for cash flow or potential flip opportunities I mainly want to rent properties out the main problem i always run into is that i only have 20k this would be a good downpayment for a first property but then the process of saving and paying off loans starts over again I can’t help but feel that there is something im missing that makes it easier or faster to get properties any suggestions would be appreciated

Thank you


Comments

charlie_Mallorey 2

Most people get a loan through a family member/friend or inheritance etc. If you can rent out whatever place for more than the mortgage/insurance/property tax then you have long term income.

You could always look into REITs if you want to invest as part of a group. I don't know which ones are legitimate/good.

  Curiousspeed444 1

Thank you so much its very appreciated In my town its very easy to purchase 120 thousand dollar homes that rent for 1300 (around 500$ above the expenses) this is my plan im just worried that its wrong to follow this path with getting too many loans and its slow but i guess slow and steady wins the race as for family help thats pretty much impossible as i am the first person in my family to ever think of keeping a dollar until tomorrow

charlie_Mallorey 1

Since you're talking about 120k houses I'm assuming you're not in CA (which are the laws I'm most familiar with) but definitely check state laws about non primary residence properties about taxes and eviction proceedings. Nothing is for sure, lots of places are stopping evictions for the near term, while you would still owe the mortgage.

Id definitely talk with someone in that industry about the pitfalls. There are times you'd need to be an asshole. Would probably be helpful to know how to do maintenance/have reliable people to fix stuff (dishwashers/HVAC etc). Personally, I hate dealing with people which is why flipping fits my personality (get in, fix stuff, re-sell) but that obviously is only a one time income.

You could always just buy a bunch of lottery tickets (please don't actually do this).

osuranger 3

Consider investing in a duplex, triplex, or fourplex using a 3% down FHA loan. They are still considered single family, and you can rent out three of the apartments. You can even take on roommates in your apartment if you want to further reduce your costs. (You must live there for the FHA loan.)

  Curiousspeed444 1

I actually love this idea and will use it if i find a 3 or 4 home condo for around 400 to 500 thousand which is hard also for FHA you only have to be primary residence for 1 year which can add more income later on thank you so much

2inbush 5

Real estate is a snowball game. Your first 2 or 3 are going to be the most difficult to purchase simply due to lack of capital unless you come into a windfall. Once you grow your portfolio, begin refinancing your properties every 3-5 years to purchase new properties.

Cheaper may seem better at first but keep in mind the maintenance that comes with older homes.

Do some market research as well. Are you in a college town? Older community? New families? This may give you an idea of what rents best where you're at. 1-4 family, apartment, retirement community, etc. Good luck!

  Curiousspeed444 1

Thank you so much i live in a family town no near by colleges or anything like that mostly new families i was thinking single family homes 3 bd 2 bth would be perfect fit the lack of capital is the tough part but i do know that the process gets faster as you go on thank you so much for the advice it’s greatly appreciated