I'm looking to get started with rental properties in a few years. What should I be doing now to prep?
Basics about me:
- 25yo and unmarried
- $65k/year income (may be getting bumped up slightly soon due to a promotion)
- currently studying outside of work to add some more designations behind my name (already have CFP, working on CLU and ChFC to expand knowledge)
- about to purchase my first home and will be renting out a room to a solid renter for first 3 years which will cover slightly over 50% of PITI
- I've generally been able to invest and also pay down student loans with about 35-45% of my pay since beginning my career
Once I finish wiping out my debt, I plan on ramping up my savings by maxing out my 401k, roth IRA, hsa, and hopefully about 10-20k in taxable accounts yearly (currently maxing roth/hsa and hitting matched amount in 401k). This should let me invest in a rental property in ~3 years. The problem is that I have zero experience in real estate and am the least "handy" person ever. Luckily, my friends father is the director of inspections for my town and is really helpful.
I'm primarily interested in rental property as a way of diversifying my income/assets. I hope that owning a home and having a renter for a few years will give me a glimpse of what is involved.
My questions are as follows:
- other than saving money, what steps should I take now to prepare for buying my first rental property?
- how can I learn more about plumbing/electric/ect? I'll probably look for classes at my local community college to start.
- do you have any general advice for someone in my situation?
If I've left out any important info, let me know. Thanks!
edit: I forgot that our real names are used here. Let me know if I should take out some of my personal info.