What is the best place to start?
Member since 2022 · 5 posts · 3 votes
What is the best place to start?
Most Popular Reply
Lakeland, FL · Member since 2018 · 242 posts · 148 votes
3yQuote from @Avery Dillman:
Hello! I have always been very interested in investing in rental properties. Ever since I was little. I've had numerous family members who became very successful in it and I would like to follow. (All of which are sadly gone now). But I have read many books and watched tons of videos but I guess I find myself lost on where to start. I've been working a min wage job for last 5 years and have nothing to really show for it. I just seem to get discouraged by the big prices of houses here in Florida. Even the run down places. Any suggestions would be greatly suggested. Or even book recommendations or courses as well! Thank you!
It is possible and you can do it. My wife and I contacted a lender last year and that one step set everything into motion, we now house hack a home in central Florida. Don't give up and make one call today to a lender or realtor and get the ball moving forward!
29 Replies
- 3yJason WrayPro MemberBanker · Nationwide · Member since 2020 · 2k+ posts · 1k+ votes
Avery,
Don't give up because here in Florida values took a huge jump during COVID. As long as you know your price point and target payment is you are good to go. If not that’s okay just start having conversations with a Banker/Loan Officer and a good real estate agent. Your banker/loan officer can run a pre-approval for you to get you qualified for your maximum loan amount. Then you know what you can afford and what you qualify for to start the home shopping phase.
Having 5 years with the same employer is a great start since most banks and lenders only need 2 years of W2 income. If you do not have a huge chunk of change its still easy to get a home by using a DPA program and Florida has more than just one DPA. So you have the employment seasoning, W2 income and DPA available. Now you just need to get a pre-approval and find a price point based on annual income. You can also explore 2-4 Unit multifamily homes because you can use the other units rents as income towards the approval. That allows you to afford a bigger loan amount and buy an income generating property right out of the gate.
- Lakeland, FL · Member since 2018 · 242 posts · 148 votes3y
Quote from @Avery Dillman:
Hello! I have always been very interested in investing in rental properties. Ever since I was little. I've had numerous family members who became very successful in it and I would like to follow. (All of which are sadly gone now). But I have read many books and watched tons of videos but I guess I find myself lost on where to start. I've been working a min wage job for last 5 years and have nothing to really show for it. I just seem to get discouraged by the big prices of houses here in Florida. Even the run down places. Any suggestions would be greatly suggested. Or even book recommendations or courses as well! Thank you!
It is possible and you can do it. My wife and I contacted a lender last year and that one step set everything into motion, we now house hack a home in central Florida. Don't give up and make one call today to a lender or realtor and get the ball moving forward! - Real Estate Agent · Atlanta, GA · Member since 2020 · 414 posts · 233 votes3y
Hey Avery!
It can be challenging/intimidating to get started, but don't be discouraged by that. Honestly, you really need to be able to save up some money to get started unless you find a mentor that you can trade your time for equity. Have you considered getting your license? If you're a hustler, you can make it happen
- Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes3y
Quote from @Avery Dillman:
Why are you still working a minimum wage job after five years? Why are you only working one job?
Nobody falls up a mountain. Nobody hands out wealth like a Christmas gift. If you want something, you need to put in the effort to earn it.
I recommend you put some effort into finding a job that pays better. Find a job that pays $18 an hour and you'll earn 50% more than you currently do. Spend another 20 hours working a second job and you will double your monthly income from what you currently make. Keep your spending levels the same and you can put away ove $50,000 per year. You can work 60 hours a week, sleep 8 hours a day, and still have 52 hours a week for leisure.
Your decisions and actions determine where you end up. If you really want it, you can make it happen.
The DIY Landlord Book4.7248 Reviews - Columbus, OH · Member since 2023 · 427 posts · 254 votes3y
I would recommend pursuing a career in real estate. See if you can find work, be it for a brokerage, property management company, etc. This way you secure both income and knowledge/experience in real estate. When a good deal comes up, you will have resources (money, contacts, potential partners) to make it happen.
- Member since 2022 · 5 posts · 3 votes3yI have taken a few real estate courses mainly one here in Florida and back in Arizona. Looking to branch out. The only thing I lack to get my license here is the state test and post education. Do you think it's worth it to go through with it and get my license? If so what should I do after? Tips on being successful with it?
Quote from @Account Closed:
I would recommend pursuing a career in real estate. See if you can find work, be it for a brokerage, property management company, etc. This way you secure both income and knowledge/experience in real estate. When a good deal comes up, you will have resources (money, contacts, potential partners) to make it happen.
- Columbus, OH · Member since 2023 · 427 posts · 254 votes3y
Quote from @Avery Dillman:
I have taken a few real estate courses mainly one here in Florida and back in Arizona. Looking to branch out. The only thing I lack to get my license here is the state test and post education. Do you think it's worth it to go through with it and get my license? If so what should I do after? Tips on being successful with it?Quote from @Account Closed:
I would recommend pursuing a career in real estate. See if you can find work, be it for a brokerage, property management company, etc. This way you secure both income and knowledge/experience in real estate. When a good deal comes up, you will have resources (money, contacts, potential partners) to make it happen.
Can't hurt to be licensed. If you can afford it/ have already taken courses, study up for the test and you'll be alright. If you're sick of working minimum wage, maybe contact a brokerage (if that interests you) and see if they'd hire you, pending you being licensed. Being unlicensed, you could consider wholesaling- can't personally speak on that as I have no experience. License also gives you MLS access, so you can see listings as soon as they go live, if you have the capital to make a deal happen.
- Real Estate Agent · San Diego · Member since 2019 · 91 posts · 52 votes3y
Beyond getting a better paying job, you can also see if there are creative ways to start cutting your current costs or earn side money so you can build your down payment faster. Do you live in a place currently that you can rent a room out or something similar? No reason you need to own a home to start house hacking. Get a roommate. If you have a car, can you rent that out part time or use it for gig work in your free time? Do you have an eye for or talent for fixing things up? Some of the BP podcast hosts mentioned recently how they started by flipping items like furniture when they were starting out to build capital for their first deal. There are many ways to boost your income which will help get you to your goal faster.
Best of luck with it. You can make it happen if you really want it!
- Chandler, AZ · Member since 2020 · 295 posts · 272 votes3y
Only you can control your income and that is your current hurdle. You need more cash coming in. With sufficient income, you get the bank's attention and qualify for loans. That aside, with limited income, I suggest when you are ready, focus on a duplex or a smaller SFH which you can live in and rent out the additional unit / rooms. Once acompished, take the income stream you generated to save up for your next property and repeat.
- Real Estate Agent · Des Moines, IA · Member since 2021 · 15 posts · 10 votes3y
House-hacking is your KEY to start!!! We have a portfolio of 5 units now and started it all with a live-in flip that I like to call a "variation" of house hacking BUT our biggest regret in how we got started is that we didn't go FHA 3.5% down on a multi family or two to get our original start. Don't stay in the renting game if you're still in it for much longer! That's our biggest regret..possibly only regret! Good luck, you can do this!
- Residential Real Estate Broker · Sedona, AZ · Member since 2017 · 751 posts · 504 votes3yHi Avery.
Quote from @Avery Dillman:
Hello! I have always been very interested in investing in rental properties. Ever since I was little. I've had numerous family members who became very successful in it and I would like to follow. (All of which are sadly gone now). But I have read many books and watched tons of videos but I guess I find myself lost on where to start. I've been working a min wage job for last 5 years and have nothing to really show for it. I just seem to get discouraged by the big prices of houses here in Florida. Even the run down places. Any suggestions would be greatly suggested. Or even book recommendations or courses as well! Thank you!
My biggest and best advice is connect with an experienced investment specialized real estate agent that does a lot of business, and ask them for advice and support. If they are really great at what they do- they can be your expert and protector and lead you to success. Once you own 1-3 strong cash flow properties, find another expert in another area and repeat. The agent should have a great lender recommendation, as well as contractors, photographers, a property manager, etc. - 3yMin ZhangBusiness MemberReal Estate Agent · Member since 2022 · 1k+ posts · 1k+ votes
Quote from @Avery Dillman:
Hello! I have always been very interested in investing in rental properties. Ever since I was little. I've had numerous family members who became very successful in it and I would like to follow. (All of which are sadly gone now). But I have read many books and watched tons of videos but I guess I find myself lost on where to start. I've been working a min wage job for last 5 years and have nothing to really show for it. I just seem to get discouraged by the big prices of houses here in Florida. Even the run down places. Any suggestions would be greatly suggested. Or even book recommendations or courses as well! Thank you!
Hey Avery, welcome to Bigger Pockets!
I would highly recommend that you consider investing in Columbus, Ohio because it has affordable market in the east coast with thriving economy and home. I would actually consider investing with bare minimum of 1% rule and has a relatively low home prices compared to other states in the US which makes it an attractive destination for investors who gets a good return on their investment. Columbus, Ohio also offers attractive tax incentives and a strong rental market.
If you have questions about this I am always happy to help.
- Member since 2022 · 5 posts · 3 votes3yI don't have much cost. I bought a house with my father and he pretty much covers everything for now with the plan on me taking over in the future. Aside from my car and a bit of debt I have I can save the rest. Although I have been saving it's been really slow. But I am still working on it. I think I may try to get my license and work in real estate a bit. Would be more money and I could gain some more knowledge of the industry
Quote from @Edward Dean:
Beyond getting a better paying job, you can also see if there are creative ways to start cutting your current costs or earn side money so you can build your down payment faster. Do you live in a place currently that you can rent a room out or something similar? No reason you need to own a home to start house hacking. Get a roommate. If you have a car, can you rent that out part time or use it for gig work in your free time? Do you have an eye for or talent for fixing things up? Some of the BP podcast hosts mentioned recently how they started by flipping items like furniture when they were starting out to build capital for their first deal. There are many ways to boost your income which will help get you to your goal faster.
Best of luck with it. You can make it happen if you really want it!
- Member since 2022 · 5 posts · 3 votes3yI agree with you! How do I go about finding the right people though?
Quote from @Chad McMahan:
Hi Avery.Quote from @Avery Dillman:
Hello! I have always been very interested in investing in rental properties. Ever since I was little. I've had numerous family members who became very successful in it and I would like to follow. (All of which are sadly gone now). But I have read many books and watched tons of videos but I guess I find myself lost on where to start. I've been working a min wage job for last 5 years and have nothing to really show for it. I just seem to get discouraged by the big prices of houses here in Florida. Even the run down places. Any suggestions would be greatly suggested. Or even book recommendations or courses as well! Thank you!
My biggest and best advice is connect with an experienced investment specialized real estate agent that does a lot of business, and ask them for advice and support. If they are really great at what they do- they can be your expert and protector and lead you to success. Once you own 1-3 strong cash flow properties, find another expert in another area and repeat. The agent should have a great lender recommendation, as well as contractors, photographers, a property manager, etc. - Member since 2022 · 5 posts · 3 votes3ySince I'm based in Florida what would be the best way to start investing in Ohio?
Quote from @Min Zhang:
Quote from @Avery Dillman:
Hello! I have always been very interested in investing in rental properties. Ever since I was little. I've had numerous family members who became very successful in it and I would like to follow. (All of which are sadly gone now). But I have read many books and watched tons of videos but I guess I find myself lost on where to start. I've been working a min wage job for last 5 years and have nothing to really show for it. I just seem to get discouraged by the big prices of houses here in Florida. Even the run down places. Any suggestions would be greatly suggested. Or even book recommendations or courses as well! Thank you!
Hey Avery, welcome to Bigger Pockets!
I would highly recommend that you consider investing in Columbus, Ohio because it has affordable market in the east coast with thriving economy and home. I would actually consider investing with bare minimum of 1% rule and has a relatively low home prices compared to other states in the US which makes it an attractive destination for investors who gets a good return on their investment. Columbus, Ohio also offers attractive tax incentives and a strong rental market.
If you have questions about this I am always happy to help.
- Real Estate Consultant · Ann Arbor, MI · Member since 2022 · 464 posts · 253 votes3y
Hi Avery-
Great question!
I would recommend getting your real estate license and working for a high volume agent after you are licensed on their team.
This will help you learn more about the real estate locally, practice the skills of real estate and hopefully make more than minimum wage.
You can also offer to help real estate investors invest in properties locally as well and take a commission. This will allow you to network with the very people doing what you want to do while earning money.
Then, you can buy a house to live in with very low money down and rent out the other rooms to cover the mortgage expense. After two years of living in the house, you can go buy another house the same way keeping the first house.
This will get you started and you can build from there.
To your success!
- 3yMin ZhangBusiness MemberReal Estate Agent · Member since 2022 · 1k+ posts · 1k+ votes
Quote from @Avery Dillman:
Since I'm based in Florida what would be the best way to start investing in Ohio?Quote from @Min Zhang:
Quote from @Avery Dillman:
Hello! I have always been very interested in investing in rental properties. Ever since I was little. I've had numerous family members who became very successful in it and I would like to follow. (All of which are sadly gone now). But I have read many books and watched tons of videos but I guess I find myself lost on where to start. I've been working a min wage job for last 5 years and have nothing to really show for it. I just seem to get discouraged by the big prices of houses here in Florida. Even the run down places. Any suggestions would be greatly suggested. Or even book recommendations or courses as well! Thank you!
Hey Avery, welcome to Bigger Pockets!
I would highly recommend that you consider investing in Columbus, Ohio because it has affordable market in the east coast with thriving economy and home. I would actually consider investing with bare minimum of 1% rule and has a relatively low home prices compared to other states in the US which makes it an attractive destination for investors who gets a good return on their investment. Columbus, Ohio also offers attractive tax incentives and a strong rental market.
If you have questions about this I am always happy to help.
Hi Avery, each market varies by price and rent. I personally think Columbus is best because it's a healthy market with a strong appreciation and growth. Average SFH is price at $150k and MFH price at $200k+. You can often 1% here from time to time. However, if you have a lower budget then I would explore into other markets like Dayton or Cleveland.
Let me know how I can help!
- Real Estate Agent · Columbus | Toledo · Member since 2019 · 607 posts · 768 votes3y
Quote from @Avery Dillman:
Hello! I have always been very interested in investing in rental properties. Ever since I was little. I've had numerous family members who became very successful in it and I would like to follow. (All of which are sadly gone now). But I have read many books and watched tons of videos but I guess I find myself lost on where to start. I've been working a min wage job for last 5 years and have nothing to really show for it. I just seem to get discouraged by the big prices of houses here in Florida. Even the run down places. Any suggestions would be greatly suggested. Or even book recommendations or courses as well! Thank you!
Start cold calling when your off, networking with investors, and hit the local library for real estate investment books. Partnering up and bringing deals to the table is a good start. Don't get discouraged. We all (maybe not all) have been there. Keep pushing!
- 3yPatrick DruryBusiness MemberReal Estate Agent · Columbus, OH & Cleveland OH · Member since 2021 · 1k+ posts · 2k+ votes
@Avery Dillman
Save up money and buy an owner-occupant duplex with an FHA loan. It's one of the best ways to get started in real estate by putting down as low as 3.5% down. If that's not doable, then invest out of state or move somewhere else that you can owner-occupy and buy rentals. - Real Estate Agent · Tampa, FL · Member since 2018 · 68 posts · 21 votes3y
Quote from @Avery Dillman:
Hello! I have always been very interested in investing in rental properties. Ever since I was little. I've had numerous family members who became very successful in it and I would like to follow. (All of which are sadly gone now). But I have read many books and watched tons of videos but I guess I find myself lost on where to start. I've been working a min wage job for last 5 years and have nothing to really show for it. I just seem to get discouraged by the big prices of houses here in Florida. Even the run down places. Any suggestions would be greatly suggested. Or even book recommendations or courses as well! Thank you!
As Jason mentioned don't get discouraged at all. There are many ways to get started in REI in the state of Florida. But having a solid real estate agent and team that truly have your best interest in mind being of highest priority. Just make sure you have your golas set and dont make any moves of of emotion but of one that makes good financial sense
- 3yKerry Noble JrPro MemberInvestor · Indianapolis, IN · Member since 2018 · 2k+ posts · 1k+ votes
I often tell people to start with wholesaling......because it gives you the foundation of the other strategies and youll connect with flippers and rehabbers.
the flip empire by alex pardo is a good one. go to the goodwill and get your books for a lot cheaper
- 3yJimmy LieuBusiness MemberReal Estate Agent · Columbus, OH · Member since 2019 · 3k+ posts · 2k+ votes
Quote from @Avery Dillman:
Hello! I have always been very interested in investing in rental properties. Ever since I was little. I've had numerous family members who became very successful in it and I would like to follow. (All of which are sadly gone now). But I have read many books and watched tons of videos but I guess I find myself lost on where to start. I've been working a min wage job for last 5 years and have nothing to really show for it. I just seem to get discouraged by the big prices of houses here in Florida. Even the run down places. Any suggestions would be greatly suggested. Or even book recommendations or courses as well! Thank you!
Hi Avery, seems like you're going through a period of paralysis analysis. I do have to say action is way more important than just reading or listening to podcasts. I would say start with a house hack! In terms of looking at other rental markets, I personally love Columbus Ohio and as someone who works with a lot of out of state investors - there's so many catalysts for why you should invest here. Specifically, there's job growth (Intel, Honda, Amazon, Nationwide, etc) and the population is growing (unlike Cleveland or Cincy). I really see Columbus Ohio as an extremely safe bet for the next 10-20 years. Plus, there's still so many positive cash flowing and 1% deals here in Columbus Ohio. Just a few weeks ago, I helped a client close on a deal getting them 20% cash on cash return. As a local investor and agent here in Columbus, let me know if you have any questions or want to connect!
Jimmy Lieu, Red 1 Realty4.9120 Reviews - 3yHamp Lee IIIPro MemberReal Estate Agent · San Antonio, TX · Member since 2019 · 1k+ posts · 832 votes
Welcome to BiggerPockets!
Buying a home may not be entirely out of reach. Many programs might help.
1. Florida Homeownership Assistance: https://www.hud.gov/states/flo...
2. Neighborhood Assistance Corporation of America (NACA)
NACA was formed in 1988 and provides an affordable option for potential first-time buyers:
✅ No down payment
✅ No closing costs or fees
✅ No mortgage insurance
✅ No consideration of credit score
✅ Below market fixed interest rate
There are several requirements to be eligible, starting with attending one of their workshops.
I hope this helps.
I wish you all the best.
- Rental Property Investor · Centreville, VA · Member since 2019 · 1k+ posts · 799 votes3y
Hi Avery, I am a huge fan of out of state investing and Long Distance Real Estate Investing was one of the first books I read before I built my portfolio in Cleveland. One of the strategies I used was working with a couple of turnkey companies and getting started in a mid-west market. I would love to connect and help out so feel free to reach out.
- Real Estate Agent · The Short Term Shop / Florida Emerald and Forgotten Coasts · Member since 2022 · 217 posts · 126 votes3y
Pick up the book, "Short Term Rental, Long Term Wealth" by Avery Carl. You won't regret it. There are great deals still here in FL, you just have to look! Don't get discouraged and eat that sandwich one bite at a time!
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