Where do I go from here?

Question

Hey y'all!

My name is Austin; I'm 27 years old, and I currently live just outside of Denver. I've been very interested in real estate investing for some time now, but I only recently began to take it seriously since I'm now in a position to actually invest. I've attended a few of BiggerPockets' webinars, and I'm close to finishing The Book on Rental Property Investing by Brandon Turner. Using the advice from Brandon Turner's book, I've been trying to evaluate a deal a day to exercise the muscle.

Considering housing prices in my area are quite high, I may try to relocate back to Minnesota in the next year or two, and I would like to save $10k-$15k more to invest in my first deal (currently have about $25k saved to invest in the future), I feel like I'm in limbo with my REI journey.

For those of you who are further along in your investment journey, where would you go from here? Find more books podcasts to educate myself with? Network with other investors or real estate agents? Just keep saving and looking for deals?

If it helps, I'm mostly interested in house hacking, but I would be open to investing in single-family homes if the numbers made sense.

Any advice is appreciated, thanks!

-Austin

Arman Ahmed · Answer

@Austin Lozano

Since housing prices are high in your area, many investors in your position look to Midwest markets where entry prices are lower, rents are strong, and cash flow is more attainable, even for single-family homes. While you keep saving, it’s a good idea to continue networking with investors and agents in those markets, track deals daily, and study local neighborhoods so you’re ready to act once your savings hit your target. House hacking is a great strategy too, and in the Midwest it’s often easier to find properties that can support both living and rental income.

Sabrina Speights · Answer

A lot of the advice here is solid, but I’ll add one small reframe that helped me early on: feeling “in limbo” often means your criteria isn’t finished yet, not that you’re behind.

I spent a long time thinking I needed more knowledge, when what I actually needed was decision clarity. The decision to move is a BIG one. It is probably the most important decision you need to make to get clarity on your steps after that, because buying in Denver vs Minnesota will likely be 2 very different things.

Also....congrats on being 27 with $25K saved!!

Wale Lawal · Answer

@Austin Lozano

Looks like you are really positioned well to start off! You have been consistently and steadily advancing in your learning and those savings are indeed very important, so congratulations on that. I would suggest that you start focusing your energy on forming connections with other investors and local agents in Denver and Minnesota. Meanwhile do not stop checking for new deals. Be open to participating in real estate meetups, online forums and social media groups they are great for the practical part of your learning and even for your networking, so you can definitely broaden your perspective.

Good luck!

Brian Bohrer · Answer

It is great to hear you are taking the steps to set you up financially for the rest of your life!

I would recommend just as others above to get involved with your local community.  I host several meetup groups here in the Springs but I know there are tons of groups up there in Denver as well.  Just show up, take notes and act like everyone is your friend and you will make friends and learn fast!

As for resources I recommend the book "building wealth one house at a time" by John Schaub.  This is a great book that simplifies the process and gives you a great strategy to begin your real estate journey!  There is so much information when you are first learning, it is important to overwhelm yourself as a confused a confused mind takes no action!

I wish you the best @Austin Lozano in your journey, and please do not hesitate to reach out if you want to grab a cup of coffee and chat about your goals!   Take care,

Caleb Brown · Answer

I would first figure out if you are staying put there or moving to MN. If you are exploring MN I would make sure you have a job lined up and speak to a lender. If you are leaning towards staying network locally and figure out what's needed to get into a property. While you do that you can continue to learn and meet people but you need to decide on location.

Kerlous Tadres · Answer

@Austin Lozano, Pick one plan for the next 90 days (2–4 unit house hack in one area), talk to a lender this week to see what your $25k really buys, and keep underwriting daily until you know exactly what a “yes” deal looks like.

Tre DeBraga · Answer

whats up man,first off I would figure out where exactly you are going to invest. Thats going to be important so you can build in that market. Then start connecting with other investors and investor friendly agents in that market. Find meet ups to attend. Talk with agents and get on off market lists. If most interested in house hacking I would learn how to evaluate those deals good and learn basic property management. Definitely start with multi family house hacking if you can its the best way to start. Then just go from there.

Peter Dorinsky · Answer

Yo Austin! Love to hear how proactive you're being in pursuit of your first investment property.

I strongly affirm the house-hacking strategy, especially if it's going to be your first investment property. It's a great way to offset your mortgage and build up equity that you can rollover into your next investment property! Not only that, but you'll have access to owner-occupant loan products which will allow you to bring less money upfront. I think your top priority right now should be settling on a market that you'd like to relocate to if you plan to house-hack, from there I'd start talking to lenders and exploring loan products to see who can offer you the most competitive terms. I think this would be particularly helpful in establishing some "goalposts" as you you continue to save and underwrite deals. Otherwise, continue to educate yourself and don't stop networking, based on what you've shared it sounds like you're on the right track!

Yashira Sanchez · Answer

You’re not in limbo, just missing clarity on the market. Pick where you want to buy, then double down on local networking, lender calls, and deal analysis. That order works.

Bobby Paquette · Answer

Get more educated, podcast and books, If you can qualify for a loan on a primary residence, then I would get a primary and house hack with renting rooms or if you can get a multifamily, then renting out the other units. I would get the seller to give you credits to cover your closing costs so you only need to bring your downpayment to the table. I would also look if the area you are interested in qualifies for a USDA Loan so you can bring no money down to closing.

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