I'm 23 years old and married and looking at getting into real estate investing, namely rental properties, on a limited budget. Any suggestions on the best way to start getting into this, I've been reading around getting some suggestions but would love to hear someone's personal take on the best way to get into rental properties. Over the past few years I've been getting a grasp on stocks and mutual funds, but feel like rental properties would be more my style of investing if I were given the option.
Welcome to Biggerpockets!
Definitely introduce yourself in the Introduction section. It really depends what you want to do, what you are starting with, if you have a full time job etc.
We are buy and hold investors with full time jobs (our saving grace). We bought our first house at 23 and 25 also married. We started out with no money as personal property right out of my undergraduate degree. We bought a fixer upper and than rented it when we were transferred. We have always lived below our means and growing our professional careers while we are simultaneously growing our investment. Which has had its moments but it has been successfully so far.
There are lots of lots of options and strategies. We have had many friends who rented out rooms in their house living rent free while building equity. Other people here on bigger pockets got started with duplex and multi-flex. The key is just to get started.
Definitely check out the blogs, podcast and forums. Another great source of information is individual blogs found in peoples signatures. Many of us including myself write about our niche. The only thing we all agree about is investing in Real Estate. Beyond that there are many different style and types of investing. My blog/website is about long distance self management, landlording, investing in class A investments, investing in a transient lifestyle, etc.
Look forward to seeing you around!
Hey @Mitch Reaume ,
Not that long ago I was in your same situation. After losing $12K in one day trading Goldman Sachs, I confirmed that real estate was the way to go :) Definitely seek out a mentor, as buying them lunch a couple of times is way cheaper than screwing up a remodel or buying a non-cashflowing property. If you can get your wife on board I would definitely recommend buying your first place as a multi-family. Most folks only stay in their first home for a short time anyway, and this is the best way to get into a rental property with low or no money down depending upon your loan type. My wife was not OK with this a the time, and she know understands why it would have been a good idea.
If you don't have kids yet, you may look at "house jumping", by buying a home, living in it a year, and then looking at buying another as your personal residence, living in that a year, and then jumping again. This is a great way to accumulate several rentals with not a ton of money down, you can gain some equity by working on the property while you are living there, and it won't be a huge inconvenience on your young family. I can say from experience, once you have a couple of kids, house jumping is not a good idea.
Thanks to both of you for the feedback! I will elaborate on my situation now (first time poster, bear with me haha).
I'm 23 years old and married and looking at getting into real estate investing, namely rental properties, on a limited budget. I have a full-time job as a pastor, and am just looking for a way to invest on the side. Any suggestions on the best way to start getting into this would be much appreciated, I've been reading around getting some suggestions but would love to hear someone's personal take on the best way to get into rental properties.
Over the past few years I've been getting a grasp on stocks and mutual funds, but feel like rental properties would be more my style of investing if I were given the option. I have always felt like real estate is a really solid kind of investment, but have also felt like it is kind of a rich-get-richer type deal where you need a lot of money to initially get into it... Though I feel that there are ways that in my current situation I could get into it if I knew what I was doing.
My current situation is that I have about $2,500 to invest, and on a monthly basis would have about $80 that I could contribute. It's not a lot, so I understand that I am probably pretty limited, but I feel as if some of the more experienced real estate investors may have some helpful suggestions on how to begin getting into real estate investment.
Hi @Mitch Reaume and welcome to the site. I've combined your two threads into one.
Jon Holdman, Flying Phoenix LLC
Thank you Jon! Sorry I tried deleting the earlier one, but couldn't find out how, not trying to spam the forum haha.
Any additional advice would be welcomed, thanks everyone!
Hi @Mitch Reaume !!! I think @Mike Sattem has a good idea for getting started with house jumping especially for someone who doesn't have a lot of money and wants to get started. I would start with buying your first home to live in and check out all government programs and others for first time home owners to see if you can get any downpayment or other types of assistance etc. In most smaller cities it will be cheaper monthly payments to own a place than to rent so a way to save money every month for the next house…..if you do the math and owning is not cheaper than renting in your town then I wouldn't buy( in my opinion). Save your money and look for a city that makes sense. Once you have a little nest egg saved again then rent out your current house and buy a second one and repeat.
It does take money to get started in real estate unless you get lucky. You might think about downsizing temporarily or taking on a second job to get the money needed for a first place to get started. It will be unpleasant short term but in the long run it will be worth it. Sometimes you have to do what you have to do :)
Don't forget to also check out BP Ultimate Beginners Guide to Real Estate Investing.
We got started with 0% down home loan (VA). Depending on where you live USDA might be an option. I know you are married but a great option to building equity and living rent free so you have more money to invest is to get roommates or buy a multiplex. We got married at 22 and 23, we lived very bare bones. Honestly we still do in order to be able to have money to invest. We had roommates our first yearish of marriage. It ultimately allowed us to have the cash flow to allow us to jump into buying our first home (since it was ohshit money) and ultimately the down payment to our first pure investment. If there is a will, there is a way.
Definitely check out people's signatures. Everyone at bigger pockets is here to learn and grow from one another. Many of us including myself have website and blog about our investing plan. This is a great resource in addition to the podcasts, blogs, and forums on bigger pockets proper!
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