I'm extremely new at real estate and I want to get a little bit of advice on this plan I have come up with to get started with investing.
I'm 23 years old with no college degree and no money saved in the bank. In the next year I plan on purchasing a duplex and renting out BOTH spaces to make double the income. How? Well, I have ways to generate funds through my family. My mother and grandfather are willing to invest in me and get the ball rolling as long as i present them with a valid plan. So let me give you a little back story.
I currently live in a rented town home with my mother, we got a sweet deal due to my mothers friendship with the landlord and are paying $1100/month for a 3bed/2bath. (some back story, huh?) I plan on living here as long as I can while I execute my plan to purchase a duplex and rent out both spaces. That should cover mortgage and a little more, yeah? Since I am brand new to this I am wondering what would be the best way to tackle said plan. Should I start investing elsewhere? Or should I follow along with this plan?
P.S. I live in the West Palm Beach, FL area and most duplex around here are from 80-115k. With a down payment on a mortgage (about 20%)? I'm looking at about 16k start up cost. Maybe I can have my mother co-sign to get a lower down payment?
Welcome. Check out student housing see below.
Locate and attend 3 different local REIA club meetings great place to meet people gather resources and info. Here you will meet wholesalers who provide deals and rehabbers (cash buyers).
Two Great reads, I bought both J. Scott The Book on Flipping Houses, The Book on Estimating ReHab Costs http://www.biggerpockets.com/flippingbook
Consider checking out HUD homes for small multi's owner occupied gets first crack.
You might consider Niche or Specialized Housing like student housing. Rents can be 2-4 times more. Remember you don't have to own a property to control it.
Download BP’s newest book here some good due diligence in Chapter 10. Real Estate Rewind Starting over
You may have trouble getting a mortgage with no money in the bank even you are gifted money by family. I'm not sure exactly of the laws in Florida, but that can be an issue in other states. Do you have a decent paying job at least? You didn't mention your employment in your story. There's more to getting a mortgage than just signing the dotted line. Anyway, just some FYI
Oh right! Employment.
I'm currently a waiter at a private country club making about 30k a year.
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