21 year old How to start the REI journey?
New to Real Estate · FL · Member since 2024 · 9 posts · 2 votes
21 year old How to start the REI journey?
Most Popular Reply
Lender · Seattle, WA · Member since 2022 · 482 posts · 768 votes
2yHI Kenneth,
You can always start off by house hacking meaning you live in one UNIT or ROOM and renting out the other vacant units/rooms to offset your monthly mortgage payment.
There are several ways to run and make sure you are maximizing your rental income while keeping your living expense as low as possible. Try looking into zillow/Redfin and see what your potential rents you can get near the neighborhood by filtering the bedrooms/bathrooms of the intentional property that you are planning to buy. This will allow you give a reference point on how much potential rent you can receive. (Max vacated rents - your monthly mortgage payment) = +/- net cashflow. Happy to connect and assist you in your real estate investing journey.
Happy to connect if you are interested to expand your portfolio
18 Replies
- 2yIan WalshBusiness MemberLender · Philadelphia, PA · Member since 2016 · 2k+ posts · 1k+ votes
Learn your market and learn to market. Becoming a wholesaler or investor friendly agent will give you skills in real estate investing that nothing else can. They are also low barrier to entry and low risk.
- New to Real Estate · FL · Member since 2024 · 9 posts · 2 votes2y
Quote from @Ian Walsh:
Learn your market and learn to market. Becoming a wholesaler or investor friendly agent will give you skills in real estate investing that nothing else can. They are also low barrier to entry and low risk.
I definitely agree with what you said. I am currently going to college majoring in RE, and right now I am involved in an internship with a big home builder (PulteGroup) where i am learning the role of construction managers, which can help me in the future if i want to BRRRR or fix & flip. I also have a commercial broker from Cushman and Wakefield interested in having me as an intern for the upcoming semester. I'm doing what I can to learn real estate, commercial and residential!
- 2yWale LawalBusiness MemberReal Estate Broker · Houston | Dallas | Austin, TX · Member since 2018 · 5k+ posts · 2k+ votes
To start in real estate, first learn all you can. Next, pick your plan for investing. Look at local and out-of-state markets. Think about ways to finance it. Meet and talk with real estate agents. Check out deals closely. Then, go ahead and bid on a property. After buying, manage the property. To grow, keep buying more and use the money and worth you gain to reach your dream of having rental properties. Keep up with new info and stay focused on owning rental properties.
Good luck!
NETWORTH BUILDERS5236 Reviews - New to Real Estate · FL · Member since 2024 · 9 posts · 2 votes2yThank you for your advice Wale! I’m in the learning stage right now. More soon to come 📈
Quote from @Wale Lawal:
To start in real estate, first learn all you can. Next, pick your plan for investing. Look at local and out-of-state markets. Think about ways to finance it. Meet and talk with real estate agents. Check out deals closely. Then, go ahead and bid on a property. After buying, manage the property. To grow, keep buying more and use the money and worth you gain to reach your dream of having rental properties. Keep up with new info and stay focused on owning rental properties.
Good luck! - 2yMark MunsonBusiness MemberLender · Orlando, FL · Member since 2022 · 440 posts · 300 votes
I'm in Orlando as well. I co-operate a brokerage that works solely with investors on the financing side of things. There are a lot of great meetings and resources around here that are geared towards investors. Feel free to connect, I'll be happy to help you where I can.
- New to Real Estate · FL · Member since 2024 · 9 posts · 2 votes2y
Quote from @Mark Munson:
I'm in Orlando as well. I co-operate a brokerage that works solely with investors on the financing side of things. There are a lot of great meetings and resources around here that are geared towards investors. Feel free to connect, I'll be happy to help you where I can.
Definitely Mark!
- Austin, TX · Member since 2019 · 5k+ posts · 5k+ votes2y
Quote from @Kenneth Lewis:
My name is Kenny and i'm 21 years old. I've always been a money-knowledgeable young man; credit (760 score), stocks, roth ira, 401k, etc. My next goal is to get my first rental property before i turn 24. I just started watched a lot of videos on BRRRR, house hacking, and whatnot on Bigger Pockets. I personally do not have the funds to put a down payment worth 25%, but i do have family that may be able to help me if i can actually find a deal and can explain it to them if it makes sense (my mother mostly likely and my grandmother!) I am really driven to get properties, but just figuring out the market i can target. I go to school in Orlando and my mother lives in Fort Lauderdale, which i think are really good areas to invest I THINK. Mind you, my mother has never had a house yet, so when she does get one, it can maybe be a duplex or whatnot (just a thought). What are the steps for me to get in real estate investing?
geGet qualified for a loan.
That will tell you how much you can buy.
Buy something where the rent coming into you is more than the cost of owning it, which will include taxes and insurance, and downtime between renters while the unit is turned, and sometimes roof replacement, etc...
In Florida a big alligator on Real estate can be the insurance costs, and roof replacements.
So talking to an insurance person about these things, which may have different costs in different cities, would be an intelligent thing to do.
You will need a lender to make the loan. So finding a lender and then finding out what needs to be you,,, for that loan to happen.
I mean some loans require you to have a certain net worth. Some may require you to live in the property. Some may require you to have a certain amount of experience or in place of that have a certain amount of cash cushion available called reserves. And these reserves could be in addition to repair and replacement reserves that are required for the loan also.
You will need cash for your earnest money when you make your offer. Ask a local realtor how much this should be based on the current market in the area.
You will need cash for your closing costs. Ask a local realtor in your market what closing costs are normally paid by the buyer.
You will need title insurance- if you do not know what this is- study up on it- it's very important.
You may need to have survey performed on the property that might be paid for by you or by the seller or it may be common practice in the area for particular pardon you to pay for it. To your realtor about this.
That's a pretty big chunk of stuff to do and you'll probably have a million questions about things you discover while studying these things.
Good Luck!
- Austin, TX · Member since 2019 · 5k+ posts · 5k+ votes2y
Quote from @Scott Mac:
Quote from @Kenneth Lewis:
My name is Kenny and i'm 21 years old. I've always been a money-knowledgeable young man; credit (760 score), stocks, roth ira, 401k, etc. My next goal is to get my first rental property before i turn 24. I just started watched a lot of videos on BRRRR, house hacking, and whatnot on Bigger Pockets. I personally do not have the funds to put a down payment worth 25%, but i do have family that may be able to help me if i can actually find a deal and can explain it to them if it makes sense (my mother mostly likely and my grandmother!) I am really driven to get properties, but just figuring out the market i can target. I go to school in Orlando and my mother lives in Fort Lauderdale, which i think are really good areas to invest I THINK. Mind you, my mother has never had a house yet, so when she does get one, it can maybe be a duplex or whatnot (just a thought). What are the steps for me to get in real estate investing?
Find out what you need to do to Get a loan. Do not pay to be approved yet, just find out.
That will tell you what you need to be, credit and job wise, and how much you can buy.
Look to buy something where the rent coming into you is more than the cost of owning it, which will include taxes and insurance, and downtime between renters while the unit is turned, and sometimes roof replacement, etc...
There are calculators on this website, and more information on the website about how to do this mathematically.
This is not a charity game . You will need to be a good property manager . Need to learn this and learn the laws of Florida regarding this as well as the federal laws . You will also need to be interpersonally businesslike with people . You must collect the rent every month .There are books available on this site about property management and also a good book you might want to read is Property management for dummies.
In Florida a big alligator on Real estate can be the insurance costs, and roof replacements.
So talking to an insurance person about these things, which may have different costs in different cities, would be an intelligent thing to do.
You will need a lender to make the loan. So finding a lender and then finding out what needs to be you,,, for that loan to happen.
I mean some loans require you to have a certain net worth. Some may require you to live in the property. Some may require you to have a certain amount of experience or in place of that have a certain amount of cash cushion available called reserves. And these reserves could be in addition to repair and replacement reserves that are required for the loan also.
You will need cash for your earnest money when you make your offer. Ask a local realtor how much this should be based on the current market in the area.
You will need cash for your closing costs. Ask a local realtor in your market what closing costs are normally paid by the buyer.
You will need title insurance- if you do not know what this is- study up on it- it's very important.
You may need to have survey performed on the property that might be paid for by you or by the seller or it may be common practice in the area for particular person you to pay for it. Talk to your realtor about this.
That's a pretty big chunk of stuff to do and learn, and you'll probably have a million questions about things you discover while studying these things.
Good Luck!
- Lender · Seattle, WA · Member since 2022 · 482 posts · 768 votes2y
HI Kenneth,
You can always start off by house hacking meaning you live in one UNIT or ROOM and renting out the other vacant units/rooms to offset your monthly mortgage payment.
There are several ways to run and make sure you are maximizing your rental income while keeping your living expense as low as possible. Try looking into zillow/Redfin and see what your potential rents you can get near the neighborhood by filtering the bedrooms/bathrooms of the intentional property that you are planning to buy. This will allow you give a reference point on how much potential rent you can receive. (Max vacated rents - your monthly mortgage payment) = +/- net cashflow. Happy to connect and assist you in your real estate investing journey.
Happy to connect if you are interested to expand your portfolio
- Specialist · Winter Springs, FL · Member since 2009 · 1k+ posts · 747 votes2y
I suggest you look into joining the Central Florida Realty Investors group. It's a member owned and operated not for profit group geared to the individual investor. They have a main meeting the 2nd Tuesday of every month and then a number of sub meetings by location and topic throughout the month. The first general meeting is free.
Central Florida Realty Investors Association - metro Orlando real estate investment club (cfri.net) - New to Real Estate · FL · Member since 2024 · 9 posts · 2 votes2y
Quote from @Scott Mac:
Quote from @Scott Mac:
Quote from @Kenneth Lewis:
My name is Kenny and i'm 21 years old. I've always been a money-knowledgeable young man; credit (760 score), stocks, roth ira, 401k, etc. My next goal is to get my first rental property before i turn 24. I just started watched a lot of videos on BRRRR, house hacking, and whatnot on Bigger Pockets. I personally do not have the funds to put a down payment worth 25%, but i do have family that may be able to help me if i can actually find a deal and can explain it to them if it makes sense (my mother mostly likely and my grandmother!) I am really driven to get properties, but just figuring out the market i can target. I go to school in Orlando and my mother lives in Fort Lauderdale, which i think are really good areas to invest I THINK. Mind you, my mother has never had a house yet, so when she does get one, it can maybe be a duplex or whatnot (just a thought). What are the steps for me to get in real estate investing?
Find out what you need to do to Get a loan. Do not pay to be approved yet, just find out.
That will tell you what you need to be, credit and job wise, and how much you can buy.
Look to buy something where the rent coming into you is more than the cost of owning it, which will include taxes and insurance, and downtime between renters while the unit is turned, and sometimes roof replacement, etc...
There are calculators on this website, and more information on the website about how to do this mathematically.
This is not a charity game . You will need to be a good property manager . Need to learn this and learn the laws of Florida regarding this as well as the federal laws . You will also need to be interpersonally businesslike with people . You must collect the rent every month .There are books available on this site about property management and also a good book you might want to read is Property management for dummies.
In Florida a big alligator on Real estate can be the insurance costs, and roof replacements.
So talking to an insurance person about these things, which may have different costs in different cities, would be an intelligent thing to do.
You will need a lender to make the loan. So finding a lender and then finding out what needs to be you,,, for that loan to happen.
I mean some loans require you to have a certain net worth. Some may require you to live in the property. Some may require you to have a certain amount of experience or in place of that have a certain amount of cash cushion available called reserves. And these reserves could be in addition to repair and replacement reserves that are required for the loan also.
You will need cash for your earnest money when you make your offer. Ask a local realtor how much this should be based on the current market in the area.
You will need cash for your closing costs. Ask a local realtor in your market what closing costs are normally paid by the buyer.
You will need title insurance- if you do not know what this is- study up on it- it's very important.
You may need to have survey performed on the property that might be paid for by you or by the seller or it may be common practice in the area for particular person you to pay for it. Talk to your realtor about this.
That's a pretty big chunk of stuff to do and learn, and you'll probably have a million questions about things you discover while studying these things.
Good Luck!
Thank you very much Scott. I will try to learn as much as i can before i even think about getting my own real estate. Thank you for the advice sir!
- New to Real Estate · FL · Member since 2024 · 9 posts · 2 votes2y
Quote from @Matthew Kwan:
HI Kenneth,
You can always start off by house hacking meaning you live in one UNIT or ROOM and renting out the other vacant units/rooms to offset your monthly mortgage payment.
There are several ways to run and make sure you are maximizing your rental income while keeping your living expense as low as possible. Try looking into zillow/Redfin and see what your potential rents you can get near the neighborhood by filtering the bedrooms/bathrooms of the intentional property that you are planning to buy. This will allow you give a reference point on how much potential rent you can receive. (Max vacated rents - your monthly mortgage payment) = +/- net cashflow. Happy to connect and assist you in your real estate investing journey.
Happy to connect if you are interested to expand your portfolio
Thanks for the advice Matt! That's not bad advice at all, house hacking what I may have to start out with tbh, or BRRRRing. We'll see! Thanks for the advice bro!
- New to Real Estate · FL · Member since 2024 · 9 posts · 2 votes2y
Quote from @Peter Walther:
I suggest you look into joining the Central Florida Realty Investors group. It's a member owned and operated not for profit group geared to the individual investor. They have a main meeting the 2nd Tuesday of every month and then a number of sub meetings by location and topic throughout the month. The first general meeting is free.
Central Florida Realty Investors Association - metro Orlando real estate investment club (cfri.net)I just joined it today lol! Someone was kind enough of referring me to it above! I'm planning on going and meeting some investors! Thanks Peter!
- 2yRobert EllisBusiness MemberDeveloper · Miami, FL · Member since 2014 · 3k+ posts · 1k+ votes
Quote from @Kenneth Lewis:
My name is Kenny and i'm 21 years old. I've always been a money-knowledgeable young man; credit (760 score), stocks, roth ira, 401k, etc. My next goal is to get my first rental property before i turn 24. I just started watched a lot of videos on BRRRR, house hacking, and whatnot on Bigger Pockets. I personally do not have the funds to put a down payment worth 25%, but i do have family that may be able to help me if i can actually find a deal and can explain it to them if it makes sense (my mother mostly likely and my grandmother!) I am really driven to get properties, but just figuring out the market i can target. I go to school in Orlando and my mother lives in Fort Lauderdale, which i think are really good areas to invest I THINK. Mind you, my mother has never had a house yet, so when she does get one, it can maybe be a duplex or whatnot (just a thought). What are the steps for me to get in real estate investing?
look at ground up where land is less than 100k in South Florida and put two swelling units on it. Build - rent - refinance - repeat
Section 8 Launch52 Reviews - Specialist · Winter Springs, FL · Member since 2009 · 1k+ posts · 747 votes2y
Quote from @Kenneth Lewis:
Quote from @Peter Walther:
I suggest you look into joining the Central Florida Realty Investors group. It's a member owned and operated not for profit group geared to the individual investor. They have a main meeting the 2nd Tuesday of every month and then a number of sub meetings by location and topic throughout the month. The first general meeting is free.
Central Florida Realty Investors Association - metro Orlando real estate investment club (cfri.net)I just joined it today lol! Someone was kind enough of referring me to it above! I'm planning on going and meeting some investors! Thanks Peter!
You're welcome.
- 2yWale LawalBusiness MemberReal Estate Broker · Houston | Dallas | Austin, TX · Member since 2018 · 5k+ posts · 2k+ votes
Quote from @Kenneth Lewis:
Thank you for your advice Wale! I’m in the learning stage right now. More soon to come 📈Quote from @Wale Lawal:
To start in real estate, first learn all you can. Next, pick your plan for investing. Look at local and out-of-state markets. Think about ways to finance it. Meet and talk with real estate agents. Check out deals closely. Then, go ahead and bid on a property. After buying, manage the property. To grow, keep buying more and use the money and worth you gain to reach your dream of having rental properties. Keep up with new info and stay focused on owning rental properties.
Good luck!My pleasure! Keep learning and growing...
NETWORTH BUILDERS5236 Reviews - 2yAdrian Lammersdorf-SciollBusiness MemberRealtor · FL · Member since 2020 · 227 posts · 101 votes
Get your W-2 income up, and work on buying a spot that you can rent the rooms out, or a duplex you can rent the other side of. Also make sure you are familiarizing yourself with the cost of properties in the area you'd like to buy so you know what a good deal is when one comes up. Find someone who has done it, and see if they can help you as well. It helps a lot to get advice from others who have done it so you know what to do, and what to expect.
Thomas Lynne Realty527 Reviews - Property Manager · Orlando, FL · Member since 2016 · 479 posts · 277 votes2y
@Kenneth Lewis if you're 21 and you want a rental property by 24, I think the best/easiest path is to work on a career related to real estate. I was fortunate enough to find a job that worked in multifamily synidcation and I was there for 4.5 years and I learned a ton. Then I went out on my own and started buying some multifamily properties with my own money and some investors, and now we also started a property management business.
Giving yourself 3 years I think is definitely doable. Spend the last year of college getting educated (assuming you'll graduate at 22, if not than your first year of work) and networking a ton. Then try to find a job somewhat related to the field, but I would probably lean towards something that is W-2. Ideally you would find something with a base salary plus commissions. A W2 makes getting a loan for an investment property easier, earning commissions allows for increased earnings which gives you more money to invest.
Live as cheap as you can! I cannot stress this enough. If you can live with family for free our cheap, do it. Future you will thank you.
Don't get caught up in having your own place, going to fancy places, big trips, etc. The way to have money to invest is to earn more than you spend and put that money aside. Put $1k+ a month (if you can) into a high-yield savings account like Marcus and earn 4-5% while you still can, and then when you have enough buy a property. If you can get free rent with Mom or someone, pay yourself the rent into that savings account.
I would seriously consider househacking a 2-4 unit property in like a B neighborhood. If you have the stomach to self manage, do that. You'll learn even more doing it yourself but you might not have the time or the desire to, and that's okay. The cash flow from the other units may or may not cover your expenses or mortgage, but that's not the end of the world. 2-4 units in FL are expensive right now, but it allows you to get your own place, pay down the principal and start building your track record and portfolio.
Keep saving, and after a year you could technically go do that again.
Also, keep always hunting for new job opportunities. You can only live so cheaply, but good chance you can find a new job that can increase your salary $10-30k especially as you gain more experience in a career.
DM if you want to talk more about it, I'd be happy to help if I can
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