New to Real Estate · Lansdale, PA · Member since 2023 · 8 posts · 4 votes
Hello everyone, I came across one of Biggerpockets's webinars and remembered David Greene stating it's best to specialize in one niche or strategy when getting started. I was wondering what everyone thought about this. Thanks!
Rental Property Investor · Fargo, ND · Member since 2017 · 129 posts · 107 votes
3y
A great way to start is by house hacking a 2–4-unit property, if your current situation affords you the ability and you have limited amount of funds available to invest.
It allows you to get into an investment property with 3.5% down instead of 20-25% down. You also only have to live in the property for 12 months, then you can move out and rent out all of the units.
Rental Property Investor · Fargo, ND · Member since 2017 · 129 posts · 107 votes
3y
A great way to start is by house hacking a 2–4-unit property, if your current situation affords you the ability and you have limited amount of funds available to invest.
It allows you to get into an investment property with 3.5% down instead of 20-25% down. You also only have to live in the property for 12 months, then you can move out and rent out all of the units.
New to Real Estate · Lansdale, PA · Member since 2023 · 8 posts · 4 votes
3y
Hello Trevor,
Thank you so much for responding. I've recently read up on House hacking; it sounds like a fun idea. My buddies and I have actually talked about renting out an apartment to split the rent, but why not do it through House hacking when I can generate some form of passive income while I charge rent? It's a unique idea, and I'd love to learn more about how to get started.
Real Estate Agent · Austin, TX · Member since 2022 · 121 posts · 67 votes
3y
I would agree with the first post by Trevor Schmitt. House hacking is quite an easy way to get your feet wet and will teach you plenty about owning as well as having a rental property and how to manage and market it well.
I will add that each niche is unique for each person depending on how much work they can/are willing to do, your personal situation (spouse or partner) and what you both are comfortable doing. For example, one thing may work great for you but maybe not me. So I would encourage you to explore as many different options as you can and see what you like or don't like or what would make the best financial sense for you.
This beginner guide is a quick intro to different investing strategies as well as ways to fund deals. It can help you get your mind going and find something you want to look more into!
New to Real Estate · Lansdale, PA · Member since 2023 · 8 posts · 4 votes
3y
Hello Tatum,
Thank you for sharing this insightful perspective on getting started with real estate investing. I agree with Trevor that house hacking can be a lower-risk way for beginners to dip their toes into the market and start learning the ropes of being a landlord. The ability to live in one unit while renting the others helps offset costs and provides hands-on experience.
You made an excellent point that the best investment strategy is unique to each investor based on their goals, time, experience, risk tolerance, etc. There's no one-size-fits-all approach. It's wise advice to explore multiple real estate investing models to find the right fit based on your circumstances. The beginner's guide Trevor mentioned seems like a great starting point to spark ideas and get educated on different options.
I appreciate you adding your voice to this conversation to encourage me to do more research, keep an open mind, and find a real estate investment strategy aligned with my specific needs and goals.
New to Real Estate · Lansdale, PA · Member since 2023 · 8 posts · 4 votes
3y
@Jake Andronico It's great to hear you've had success house hacking in Reno! I've always wanted to move to Nevada. Turning your primary residence into a rental property can be a clever way to get started in real estate investing. Building up to owning multiple cash-flowing properties is an impressive accomplishment.
I still need to do some more learning but it's leaning towards House hacking.
@Jake Andronico It's great to hear you've had success house hacking in Reno! I've always wanted to move to Nevada. Turning your primary residence into a rental property can be a clever way to get started in real estate investing. Building up to owning multiple cash-flowing properties is an impressive accomplishment.
I still need to do some more learning but it's leaning towards House hacking.
Thank you so much!
Thank you man! You can certainly do it.
I love this spot near Lake Tahoe.
Good luck on your journey and I wish you a lot of success :)
@Jake Andronico It's great to hear you've had success house hacking in Reno! I've always wanted to move to Nevada. Turning your primary residence into a rental property can be a clever way to get started in real estate investing. Building up to owning multiple cash-flowing properties is an impressive accomplishment.
I still need to do some more learning but it's leaning towards House hacking.
Thank you so much!
Thank you man! You can certainly do it.
I love this spot near Lake Tahoe.
Good luck on your journey and I wish you a lot of success :)
Thank you for the kind words and encouragement! I'm glad you have a special place near Lake Tahoe that you enjoy. Wishing you all the best on your own journey as well.
Thank you for the kind words and encouragement! I'm glad you have a special place near Lake Tahoe that you enjoy. Wishing you all the best on your own journey as well.
Thank you for the kind words and encouragement! I'm glad you have a special place near Lake Tahoe that you enjoy. Wishing you all the best on your own journey as well.
I would say the first step in anyone's journey to being a landlord is to own their own home. This can be a house hack or just buying a house to live in. Since most people on these forums are considering things like turn-key vs flips vs brrrr vs something else residential, I would argue owning your own home, with the upkeep needed is invaluable to making smart investment decisions.
What's a furnace cost? Well, you know if you have had to replace or service yours. What's it take to clear hair from a clogged drain? You know when you did it yourself on your house.
That being said, a house hack is an easy way to get into owning a home/small multi. You can do this with a single family home and just rent to roommates. You can buy a 2-4 family and rent out other units.
From there, it will start to tell you what you like, a bit. Do you mind managing local investments? If so, focus on that. Do you have a knack for construction management and or are handy? Maybe flips and BRRRs start to make sense. Love dealing with people and hospitality side? Maybe STRs.
I agree with the consensus here that house hacking is a great option for starting out, though the first step into REI is dependent on the goals/personality of the investor. House hacking is really good for dipping your toes into landlord-ing and managing tenants, but it can also be stressful living with strangers and not having your space to yourself. It's all about personal preference and what you're looking to achieve.
A great way to start is by house hacking a 2–4-unit property, if your current situation affords you the ability and you have limited amount of funds available to invest.
It allows you to get into an investment property with 3.5% down instead of 20-25% down. You also only have to live in the property for 12 months, then you can move out and rent out all of the units.
I agree, that's how I got started and never looked back.
I agree with the consensus here that house hacking is a great option for starting out, though the first step into REI is dependent on the goals/personality of the investor. House hacking is really good for dipping your toes into landlord-ing and managing tenants, but it can also be stressful living with strangers and not having your space to yourself. It's all about personal preference and what you're looking to achieve.
You raise some good points about the pros and cons of house hacking. It can be a great way to get started in real estate investing without a huge capital outlay since you can live in one unit while renting out the others. This helps offset your mortgage and expenses. However, as you mentioned, not everyone may be comfortable living with strangers as tenants. It requires more hands-on management and compromising on your living space. Ultimately, whether house hacking is the right first step comes down to your goals, risk tolerance, and personal preferences around privacy and sharing space. It's not a one-size-fits-all approach, but for the right investor, it can be a smart way to dip your toes into landlording and leverage real estate early on. There are merits on both sides to consider.