Would appreciate advice from experienced people

Question

Hi, I’ve recently gained interest in real estate, more specifically rental properties such as single family homes or duplexes. My problem is Im in my mid twenties and only have about $50,000 in the bank. I’m wondering if there are opportunities to get started without having $150,000+ in my bank account.

Eliott Elias · Answer

I own 13 properties and started with zero money. I became known as a deal finder, and the money came like i was a magnet.

Nathan Gesner · Answer

You can purchase an owner-occupied property with less than 5% down. Look for fourplexes. Live in one unit, rent the other three out.

It's hard to find something affordable in California and the rent laws are terrible for Landlords, particularly those lacking experience. I recommend you maximize income/savings while in California but start looking to move to a more affordable state with fair Landlord laws.

Peter Mckernan · Answer

Great job one the 50K in the bank, that is solid to start out with! If you are willing to live in a duplex or triplex for a year, I would do 3.5% down or 5% on the purchase of a duplex, if you are going to house hack/live in one for a triplex you will need 15% down per required on financing. For area, I would suggest a little more inland, Riverside, Redlands, Upland, some of these areas to take a look at since the price point is a little lower on that first purchase.

V.G Jason · Answer

Not all you need is 20%, you need reserves and you to need to invest where you're able to be resilient to the basic issues that come with investing. So don't listen to this you just need 20%. You'll need more.

With that said, $50k in more affordable markets that'll be more landlord friendly is very possible. And in your mid twenties, I'd totally roll the dice assuming you don't have many others relying on you. At that age, time in> timing.

Joseph Crunkilton · Answer

Nick,

Absolutely! All you need is 20% down for a mortgage. A big reason I got started out of state investing was because I could buy multiple properties for what I could buy one for in Portland. With those funds you could buy 2 SFH that net you a few hundred bucks in cash flow.

Have you ever thought about out of state investing?

John Morgan · Answer

@Nick Filer

I only had 30k in savings when I started 7 years ago. Lol. 50k is more than enough.

Nicholas Coulter · Answer

@Nick Filer Lets talk house hacking. You can get a deal on the MLS now that could work out for you! Lets connect and talk more.

Nick Filer · Answer

Very interesting. I have a lot to look into. Thank you all for advice!

Would appreciate advice from experienced people

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