Starting a rental empire

6 Replies

Hello, I am generally new to the site and have a load of questions i need advise from you experienced investors. I am 17, I live in southern Washington, and have decided i wish to begin in real estate as an investor for my career, i work part time while going to school and have about 5k saved up. I am very aware this will not be enough to get into the game but that leads me into my questions. How much capital do you believe i should save before i start working? Should i dive right into rentals or do fix and flips to build more capital(i do have the ability to do so with very little needing to be hired out)? How many homes should i have in my portfolio before i go to a management company? and probably most important, how do you figure whether a house is the right house to rent, how much to price rent out for, and who to rent to? I have heard all sorts of answers and would just like clarification. Thank you in advance.

@Joseph Steffl

Capital requirement aside, you have the enthusiasm, now you need the education and experience, especially if you want to fix & flip/rehab and rent.

 I would suggest you find a reputable real estate broker, property manager, or rehabber in your area and see if they might have an opening for an assistant / crew labour.   This would allow you to gain exposure to the business and earn a bit of quid in the process.

As you gain exposure and continue to educate yourself, some of the answers to the questions above (which are good questions, but a little premature at this point) will become known.

Originally posted by @Roy N. :

@Joseph Steffl

Capital requirement aside, you have the enthusiasm, now you need the education and experience, especially if you want to fix & flip/rehab and rent...

This is great advise. The only thing I'll add is use this site for all the great resources it offers in building up your education for free. Read the blogs, listen to the podcasts, read some of the project diaries to see what other successful investors are doing. Best of luck to you!

Let me just say that I am in the same position as you although perhaps just a bit further along the path. I got interested in RE when I was 19, at first I was just curious and then I checked out every book from my college library about how to invest in RE. Read as much as possible about the subject, use BP but also read books, check your library. 

I would also advise to try get a job or internship in a RE firm. In my own experience I first interned at a broker and then two investment companies. This allowed me to see how bigger deals transacted and how to analyze anything. This gives me confidence and the credibility when talking to people about real estate.

See getting a job as a paid mentorship. At this stage you will be getting paid to learn. Your "bosses" will teach you so much more a book. You will find that business people want to help you ! Your young age can be a great asset, use it wisely, ask many questions and LEARN. At interviews express your enthusiasm about RE fully, you will get the job. 

When you turn 18 consider getting your license. This will allow you to get experience in transacting in real estate without risking any of your money, it will also open more mentorship opportunities with your broker and other agents. Close a few deals as an agent, continue to save your income and commissions. Then you will have the confidence, capital and knowledge to do your first deal in style.

Thanks everyone for the advise! I have been recently applying for internships but have not gotten much back due to my age and the fact im still in school, but I shall continue.

Keep looking talk to your parents and grandparents and any of their friends that will listen. Someone that your parents know has some rentals is would probably take you along to do repairs even if it's not paid you will learn first hand. If you were local I'd let you ride along and teach you as much as I could and put you to work.

@Joseph Steffl , welcome to BP.  A few quick questions.  Do you still live with your parents or are you renting?  What are your college or further education plans?  Do you have any relatives or friends of families who are in some area of real estate?  You have a lot of paths open but those opportunities will depend upon where you are going.  If you are going on tho college then I would suggest looking into having your folks cosign and buy a rental to house hack by renting out rooms to other students, if you are not going to college then a job in real estate sales or even construction and remodeling may help you get set up to do a flip property.  I will strongly advocate for college as investing in yourself is usually a big help and there are so many more job opportunities to those with a degree.  You have a lot of questions about details I think those answers can wait.  The journey of a thousand miles begins with the first step.  Start figuring out how to buy your first house before trying to figure out how to run an empire.  Good luck.