Completely new, looking for advice
Hello All,
I have been listening to the BP Podcasts for quite some time now and have read a few books about Real Estate Investing, but I think I am finally ready to jump into Real Estate Investing. I recently became a licensed Real Estate Agent in order to get access to the MLS and get be able to represent myself, as I saw this as a good first step in my real estate journey. My long term goal is to be able to make Real Estate Investing my full time job, but I know there are steps along the way.
I currently own my primary residence in the Suburbs of Austin, and I am looking to figure out my best path forward. I should also say that I grew up in Austin, so I'm well versed into the ins and outs of the market and what it currently looks like. I am intrigued by the idea of potentially house hacking a duplex or quad somewhere in Austin and turning my current primary residence into a rental, knowing that it wouldn't be a cash flow play, but more of an appreciation play. Alternatively, I have been looking into the Multi Family market in San Antonio as there appears to be some ability for cash flow in that market.
Any advice would be much appreciated. Thanks in advance!
Tate
Quote from @Tate Kipperman:Hey Tate!
Hello All,
I have been listening to the BP Podcasts for quite some time now and have read a few books about Real Estate Investing, but I think I am finally ready to jump into Real Estate Investing. I recently became a licensed Real Estate Agent in order to get access to the MLS and get be able to represent myself, as I saw this as a good first step in my real estate journey. My long term goal is to be able to make Real Estate Investing my full time job, but I know there are steps along the way.
I currently own my primary residence in the Suburbs of Austin, and I am looking to figure out my best path forward. I should also say that I grew up in Austin, so I'm well versed into the ins and outs of the market and what it currently looks like. I am intrigued by the idea of potentially house hacking a duplex or quad somewhere in Austin and turning my current primary residence into a rental, knowing that it wouldn't be a cash flow play, but more of an appreciation play. Alternatively, I have been looking into the Multi Family market in San Antonio as there appears to be some ability for cash flow in that market.
Any advice would be much appreciated. Thanks in advance!
Tate
Welcome to the BP forums, great decision to jump on here and introduce yourself. The forums are a great place to read about whats going on in your local market as well as read up on topics of interest.
I'd recommend setting up keyword alerts to receive notifications anytime a topic/area of interest in mentioned.
I would also take some time to complete your BP profile. This makes it easier for people to find you and connect with you.
While you prepare to potentially househack/invest in Austin or San Antonio, I'd advise looking into ways to monetize your license & local area knowledge. There are many ways to do this and many potential lead sources to consider.
With MLS access, you can look up expired listings and call up those homeowners. There are deals to be made with properties like this as the owners are oftentimes motivated to sell quickly. Some are even more motivated than when they originally listed their property.
The great thing about having your license is that even if the #s on the expired listing wouldn't work for you or other investors, you can still develop a relationship with the seller and list it on the market. Build and nurture as many relationships as possible so you can use the commission/extra income from these deals to put towards your next investment property!
All the best to you on your journey!
Abel
P.S. I've been to Salt Lick at Round Rock a few times and loved it... If I moved to TX, Austin would be atop my list of potential cities to live in!
Hi Tate, you have some great ideas there as far as what to do with your current property as you purchase the next. The only caution I would provide is, while you know the market well now, what is the trajectory for your market? Are jobs continue to grow YOY? Is median income growing YOY? Are properties still appreciating at the same rate or are they leveling off? I don't know your market but these are metrics I would begin looking at to determine if this will still be a good market to be in years out.
Welcome to the forms @Tate Kipperman
Sounds like your on the right track! I like the move where you rent out your primary. Might not cash flow now but year 3 pro forma will probably look better than year 1.
Two things I'd suggest is to keep house hacking and dollar cost averaging.
Too often to I see people get caught up in market timing. I'm sure some have timed things well but it's an exhausting exercise. Instead I really appreciate the concept of Dollar Cost Averaging. Just buy a couple deals every year for the next 10 years.
I've been buying property in Columbus OH for 5 years now and still just trying to keep things nice and steady
Welcome Tate!
Quote from @Tate Kipperman:
Hey Tate, welcome! When determining what investments you want to pursue, I always start with the end goal. Do you need cash flow now or can you wait? Do you have a large down payment now or a small down payment? How long do you plan to hold a property? Is this more of a retirement move or are you looking to get in and out within 5 years? Questions like this always help me to narrow down my focus.
Tip: Go into ChatGPT and write out your current scenario and tell it to ask you up to 20 questions to help you narrow down your real estate investing strategy.
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