First and foremost, how do I begin? I'm 20 years old, work an hourly job, and have very little saved up. I was looking online, and getting a fourplex, renting out three of the spaces and living in one of them, and creating a positive cash flow sounds nice, but the question is.. how? How do I get started, and where do I begin? Do I need to get a license? If there is another thread that answers my questions, please feel free to include! Thank you for your time. :)
You will not need a realtor license to house hack.
With little down you can look into an FHA loan which i believe requires 3.5% down payment instead of 20. So please look that up on BP or a quick google search will give you much more. You can also look up a 203k loan which is very similiar but includes any rennovations that may need to be done.
You also have to look into your finances. You say you are working an hourly job is it going to supprt this type of investment? You have to count for vacancy, maintenance, closing costs , and some other fees.
I would start looking in the area using trulia, zillow or even talking to a realtor to get an idea of what is on the market, and what you are able to afford. Continue to use BP and learn as much as possible about becoming a landlord and the laws and regulations that follow specific for your area. As always develop a plan to execute and also an exit strategy.
keep learning and keep saving. get your finances in line before even thinking about making any drastic moves. this is the time where you soak in as much information as possible.
for an FHA 203k, you will need a minimum 3.5% down payment PLUS closing costs which can amount up to 6%. People forget to mention closing costs ALL the time when it comes to 203k, leading people to believe they can buy property with 3.5% down.
Digging around biggerpockets for the next couple months is my advice on what to do next.
I will echo Kyle Gregg. As a newbie I would absolutly agree! Get your finances in order and learn as much as possible in the process. I started by listening to the BP podcasts, and I just caught up to the latest show #135. There is a lot of free information here and I would suggest reading the beginners guide to RE investing which BP provides for free, Guide to Real Estate Investing.
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Check out the Start Here page http://www.biggerpockets.com/starthere
Check out BiggerPockets Ultimate Beginner's Guide - A fantastic free book that walks through many of the key topics of real estate investing.
Check out the free BiggerPockets Podcast - A weekly podcast with interviews and a ton of great advice. And you get the benefit of having over 100 past ones to catch up on.
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). Find them through Google and meetup.com
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.
Download BP’s newest book here some good due diligence in Chapter 10. Real Estate Rewind Starting over
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