I have been looking in to buying a 3 bedroom 2 bath SFH or a condo/duplex in Southern California. My plan was to do conventional loans to finance the property and then live in it while fixing it up. In the meantime, I would be renting out the other rooms to friends. I hope to keep the property for awhile. Eventually I plan to buy another to fix-up and fully rent out the original property. By doing this, I hope to build up a portfolio of properties.
This is my first time getting my feet wet in real estate. Is this a good plan for a beginner? Any advice would be much appreciated. Also, is it better to buy a Single Family House or a condo/duplex? Do you recommend conventional financing or FHA loans? Thanks!
@Ryan Leong I believe this is referred to as house hacking. There are some good podcasts about this strategy as well as many posts on this site.
Welcome to Bigger Pockets!
We are buy and hold investors in single families. I would HIGHLY recommend you stay away from condo's, townhouses or anything with HOA's. We have a few HOA's and they ar the death of me. We work full time and invest in real state on the side. We got started when I graduated from graduate school with a personal property that we fixed up and rented it out when my husband was transferred. We also buy pure properties all over the nation where it makes sense. So use your job for the amazing opportunity of learning different arkets on someone else dime! Our goal is for early retirement in 15 years :)
We have many friends who did exactly what you are suggesting. We actually saved our downpayment for our first investment through this method. We had planned on doing it a couple of other times but we ended up getting orders instead. It is a great plan just make sure you treat your roommate like a business. I talked in depth on my website what we learned and how to write a roommate lease!
You will love the diverse community and all the resources. So a great place is to look around the blogs, forums and listen to the podcasts for different niches. If you see a post you enjoy check out the persons signature. Many of us including myself talk about our strategies, styles, niches and business model on our website. So definitely check that out as it is an amazing additional resource. For example, my blog is about while working full time, buy and hold investing, 0% Down Rentals, Personal Properties turned rentals, Long distancing investing, self-managing 3,000+ miles away. Definitely list your blog or website in your signature, if you have one. Its a great additional networking source.
Look forward to seeing and connecting with you around! Let me know if I can be on any help! Welcome on your adventure!!!!
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