hi there my name is nicholas. I Am currently working a 9-5 and I’m the process of building my credit so right now. I plan to take a year and save as much as possible for a 20%down payment on maybe a single family or multi family. My only worry is not having enough capitol to follow threw with my investment.
Flipper/Rehabber · Leominster, MA · Member since 2020 · 667 posts · 384 votes
6y
Nicholas,
I recommend getting aggressive about your preparation. Here is what I would do: (1) set up a Redfin profile or Zillow or Realtor.com, any of those platforms will work, (2) start looking at property in the place where you plan to buy. Pay attention to square footage, age of the property, number of bedrooms, number of bathrooms - keep track of every new listing and follow them until they close, get it all on a spreadsheet... (3) look for a multi family, instead of a single (this is an easier way to build equity and create long term wealth), (4) instead of 20% down, try to get a 5% down program - use the cash to upgrade the HVAC, electrical, roof, plumbing etc., (5) live in the multi for a couple of years and keep saving as much money as possible, and (6) start looking for another similar property and do it all over again...
I put a lot of emphasis on the educating yourself on your markets - the more you know about what the property is worth, the better off you will be. Updating a property is NOT nearly as effective a wealth building strategy as it is made out to be. The old adage in real estate is that you make all of your money on the purchase, this is because the value of the real estate is tied to where it is. For evidence look at a 1,500 sq foot 3 bed, 1 bath house built between 1940 & 1970 in San Francisco and look for a similar property in Jacksonville, FL.
The above is based on my experience & is a reflection of what I would do if I were in your position. I hope this helps!!!