Hi everyone! I just graduated college this past may and have been thinking about investing in real estate. I have a full time job working as a pharamaceutical sales rep in the Hudson Valley, Ny. I have read a lot about lease options and I was wondering if that is a good strategy to start off with. I have a good idea of the market and area because I am driving all day everyday from Rockland county to Westchester County all the way to the top of the Hudson Valley. Any advice would be appreciated and would love to connect with people in the area! Thanks BP community.
You thought about house hacking a multi?
Hi Sean and welcome. Provided you have a pretty solid and steady income, I suggest you find a duplex or triplex to start off with and live in one of the units. If you qualify, which it sounds like you would, take out a 30 year fixed mortgage at a low interest rate to buy it. Since you’ll be living in one of the units potentially, you should qualify for “owner occupied” interest rates...don’t quote me on that as I am not a lan officer, but worse case, you’ll get “investment” rates, which are still pretty darn low these days. Then, once you get comfortable being a landlord, rinse and repeat! Try to buy in upward trending markets and of course remember the golden rule of real estate investing: you make money when you BUY real estate!!! Best of luck, Bryan
P.S. - once you get tired of being a landlord, hire a management company to manage your props for 7-10% of rental income. And buy properties with at least a 10% or preferably greater cap rate (rental income minus operating income (i.e. expenses) should net you 10% or more). Last tip, set aside some money for each unit to cover 3 month’s of vacancy and 1-3% of purchase price to cover any major repairs!!!
House hacking is a great way to start. I did it and didn’t even realize I was doing it until years later when I learned the term. It allowed me to free myself of a mortgage quickly.
I like the idea of a multi-family house hack. I would have done that if I had known better! My current living arrangement precludes me from Doug so or I would be doing so now.
Don’t study too long. Get going or you end up like many of us...on the proverbial learning treadmill.
If I were you, and I know what I know now, I would 100% house hack!
Find a good area, and get a large multi-family property. After you live in it for a few years, move towards the next one! I don't know NY laws, but in VA any owner occupied home only requires 5% down, so it's be an easy way to investor success if you're flexible with moving!
I have thought about house hacking and I am currently looking. Thanks for the advice!
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