What would you do if you were in my shoes

Question

Hi everyone,

Quick background on me. I am senior in college graduating this coming May and have secured an insanely high paying tech job in the DC area working for a big tech company making a total compensation(base salary, bonus and stock) of 233k my first year(very cash heavy only about 4% stock). In the next 2 years I am confident enough I will get a promotion and pay bump from around 25% -40% (that's about the average range) I have zero debt from school from being being on a full ride. I have about 10k in stocks. I started early caring about my credit and have obtain a 750 credit score. I will be living at home when I start working due to growing up in commuting distance from my office. I say all this to say I think am in an insanely good financial position were I can absolutely propel myself to high net worths through real estate and want to look for advice. I know for a fact I want to get a multifamily house hack every year. Also, I am looking into the sort term rental loop hole to lower my w2 taxes as well as BRRRR if I find some great deals. I want to scale my real estate portfolio and am more concerned about my net worth than cash flow especially in the beginning. I am just curious as to how you would approach your first year and what you would want year 5, year 10 and year 20 to look like.

Thanks BP family

Robin Simon · Answer

Think house hacking makes the most sense starting out - use house hacking and conventional financing and turnkey investments to start out and then shift over to commercial (DSCR loans) for BRRRRs after you have a couple years under your belt and are ready to scale

Also - be careful of making such assumptions of raises, bonuses etc. over the next couple of years before even starting - things have a way of not always going according to plan (and always smart to be conservative with assumptions). This 1000% applies to real estate investing too

Nathan Gesner · Answer

This conversation can go 50 different ways.

I would start by sitting down and considering your goals. Are you looking to keep your W-2 job for the next 10 years and use real estate to build long-term wealth that you'll access some time in the future? Are you hoping to be financially independent and live off your investments? Or maybe you want to make enough to support yourself if you have to, but you intend to continue working?

Sara Frank · Answer

Use an FHA loan to buy a MF property in DC -- 2-4 units. Repeat each year

Russell Brazil · Answer

Id buy a 2 unit in Shaw, Columbia Heights, 16th St Heights, Petworth, or Capitol Hill

Jack Seiden · Answer

This is extremely easy, especially since your making plenty of money at your job abd don’t need to be overly concerned with cash flow, buy in highly appreciating areas with limited room for new housing stock to be built and profit.

Emily Howlett · Answer

Congrats on being set up for success so soon after graduating, and welcome to the DC area! The area doesn't have a lot of multi-families, so maybe focus on just the house hacking concept with a single family house to start off. Depending on where you are, it can be pretty easy to find people to rent by the room. Once you get a feel for it and build up some cash reserves, the timing may work out that one goes up for sale. If you're able to maximize your saving and minimize your spending - which it sounds like you've already got a plan for - you should be able to work up to a pretty good scale to invest on a regular basis. I'd be happy to chat anytime, and again - welcome to the area!

What would you do if you were in my shoes

What would you do if you were in my shoes

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