I am looking to purchase my first property for 136,000. I was curious as far as what I should do or if I should even invest in this property 1st or look for something else. I am currently a teacher in South Carolina. Any advice welcome!
You have not defined your RE investment goal and as such its difficult for anyone to advise you.
As popularly asked, what is your 'WHY'? why do you want to invest in RE? What is the driving force?. Until you properly articulate this, even with $1,000,000.00, you still be in the woods..
Thats too easy... My goal is financial independence, I despise having to wake up everyday and work for someone else... I grew up in a family of entrepreneurs and people that work for themselves. I have a burning desire to be my own boss and put in the hours so that I can set my own schedule and build my own life, not take the safe route only to die old, and broke with regrets. Also, I want to establish something that I will be able to pass down to future generations.
I would tell you to get the details of the potential purchase together and place it on the Deal Analysis Forum. You should be able to receive a lot of assistance.
Good luck to you! I looking for the same thing. I watch my grandfather and father enjoy financial freedom through real estate investing.
I really want to get involved and finally begin to take control of my life, financial freedom is the ultimate goal! I bought a couple books and have been trying to piece information together, I feel like the hardest part is simply getting from zero to one!
Check out Buy It, Rent It, Profit: Make Money as a Landlord by Bryan Chavis. You won't be disappointed! It addresses EXACTLY what you're asking for...and more. It'll help you determine if you've even looking in the right area for a property. Good read!
Starting with an owner-occupied(1/2) duplex has a lot of advantages in starting out. Owner-occupied allows you to have a lower interest rate and/or a lower down payment.
It should be easier to manage if you live next door, but it also means this person is not only your tenant - but your neighbor. So you may want to screen a little more thoroughly than someone who is just a tenant.
In some areas special financing/incentives(usually low downpayment programs) are available for teachers. You may want to see if that is available in your area.
Well said. I think you have the fire and desire with enough resilience to push through-all these are good qualities that will keep you up at night..
That said; are you interested in long term appreciation or cash flow? Again, the market/location is key. Looks like you have already identified a property? Without the details, it will be impossible to make a decision. How much down are you paying? what is the rate?Taxes, Insurance etc? what is the rent in the area? Any comps?
Am sure you will get more help from BP if you provided these details.
Thanks again! Im looking into that book as we speak, Im still in the middle of reading The book of Investing in Real Estate with No (and Low) Money Down lol but ill crack that one open as soon as I finish
I had no idea about those special incentives for teachers... I will have to look into that immediately! That is something that will have amazing benefits.
I have found a property that has caught my eye. I emailed the real estate agent and thats about as far as I have gotten. In my mind I want to create cashflow and rent out the other unit so that the occupant can pay off the mortgage for me.
I am also a teacher with similar goals.
My first deal was a duplex in which i occupied the lower unit for 4 years.
At first I lived in a beat up apartment for 250/month out of pocket. Then it was a decent apr for free. The last year I was there it was a luxury apartment that paid me 150/month to live there. (I fixed it up nicely little by little)
I lived there for a total of 4 yrs. eventually that neighborhood became so hot I had to move to a cheaper area so I could take advantage of the rising rents!