Updated 17 days ago on . Most recent reply
Turning 18 and buying a rental.
Hello everyone:)
As you seen I’m turning 18 (in about 4 months) I live in St. Paul mn and I’m looking into house hacking and eventually owning at least over 100 units.
I have my GED and am talking/working with my local union about getting into the laborers union the day I turn 18. My plan is to geat a steady income and buy a fourplex.
eventually owning atleast 3-5 triplexes/fourplexes and hiring a part time property manager, with my skills I learn from the union as long with the people I meet I could have contacts for repairs that might come up.
the main reason I’m posting is to hear if my plan sounds like it could work from people who have experience, so if you have any ideas or have suggestions please tell me.
Thank you for reading!
Most Popular Reply
On the financing side, house hacking a fourplex is the right approach when you're just starting out, but you'll need to get your lending ducks in a row before the union income starts flowing. For an FHA loan on a 2-4 unit property you need at least 3.5% down with a 580 credit score, but most lenders want to see a two year work history in the same line of work. Starting a new trade at 18 means you might be looking at a year or two before you're bankable on paper.
Use that time. Get a credit card now, use it for gas and groceries, pay it in full every month. By the time you have the income history to qualify, you'll also have a credit score that isn't thin-file territory. The financing piece trips up a lot of young investors because they assume income is the only thing lenders care about.