Am I being realistic here?

Question

Hello Everyone!

I am new to this site/forum and fully enjoying it so far! I have already started reading the beginners guide and I am SO excited to get started! My goal is to have a "buy and hold property with property management" by this time next year. If I could get it a little sooner, then that might be okay too! Anyway, I would also like to buy a new home for residency in the next three years. I have a modest income with expenses to match =] I have already starting saving money for my place of residency but would like to start saving for my investment property. Do these goals seem realistic or should I downgrade a little?

Ned Carey · Answer

Yes it is realistic but that doesn't mean easy. It is great you have modest living expenses. That is how to build wealth, live within your means and invest the rest.  You can find plently of help here as you move down your path.

Good luck - Ned

Jay Y. · Answer

Are you planning on buying your own home and investment property in California?

If the investment property is out of state, I'd say within a year's timeframe is realistic, since there are many markets outside that are much more affordable. So, it should be possible to save up the downpayment, even with modest savings. This would definitely be much tougher to do in most parts of California...

Jerry W. · Answer

Saving now either way is a great idea.  Be careful on getting loans sometimes your debt to income ratio gets out of whack and scares banks from offering loans.  most banks require you own a rental for a full year before they consider the income to be sufficiently seasoned to count as income.  So if you buy your rental first you may have to wait one year for your debt to income ratio to even out.

Shequann Burrwell · Answer

very realistic. creative financing can get you that firat buy and hold quicker then your year timeline for sure. as for a home for residency many will suggest that you find a duplex and live in one of the units and rent the other out to pay the  mortgage. this also negates the need for a property manager since you live in the same building as your tenant. its a excellent way to be able to save for another investment property then build a empire from there.