Hey there, just making my first forum post.
So I'll cut to the chase. (I am kind of a go-getter lol).
I am 24, have been passively following real estate investing forums/topics for about 2 years.. Last year I bought my first Single family house for about 126K. 0 money down using a VA home loan. I am not married, I have no debt ( I had a student loan but paid it off in the military). I was going to get my real estate license but now I work full time to help pay for my house.
So, now that, that is all said. I am facing a dilemma. I need to get to the next step.. the next rental. I am highly unsure of what that step may be. Maybe I am fearful of the unknown lol. I got this far, finding the decent property, buying it, managing it on my own a bit (and its kind of hard doing it alone with a full time job heh), so I thought, "maybe i'll look at property managers" and wasn't sure that's a good first step. I don't have that 3-6 months savings quite yet, but I can attain that if I save the next month or so.
What are my options for the next house? Save 20% more and use an FHA (making me wait even longer to purchase which I really want to get this ball rolling)? Partner to fund the next one (is partnering ever a good idea)? I will lose a tax benefit on the current house if I no longer live in it so I guess there is that consideration. Then I am conflicted on getting another SFH or a Multi. There is a decent multi that's nearby I was considering, maybe I could have a family member fund some of that, and I live in one side for a bit?? IDK, bleh.
All-in-all, I'm conflicted about paying off the house I have, and getting another one and rightly driving my costs up... but, I guess that is why rentals are such a hard thing for the majority to get into.. because the debt is so big, but not bad per se.
Anyhow, nice to get any replies, and glad to meet other people with similar mindsets :)
Updated 9 months ago
Edit: Didn't mean FHA loan as I don't think I qualify for that. Instead a traditional 30 yr fixed loan or what have you.
Welcome @Travis W. Thank you for your service and congrats on looking for the next step. Partnerships will definitely help you but all things considered, what are your goal for REI? The more specific you can be on your goals, the easier it will be to determine your next step.
Goal: I want to acquire as many buy and hold units as possible.
Defined Goal: I want to acquire 100 buy & hold units that cash flow a minimum of 100$ dollars/month, in class B-C neighborhoods in the next 5 years.
Then take that defined goal and divide it up into consumable chunks and develop daily drills & tactics that will help accomplish those consumable chunks.
Are you currently house hacking? I don’t understand why you would lose a tax benefit? You either write it off personally or against expenses. In my case I get more benefit if I don’t live in it because I don’t itemize on my personal return. The standard deduction is greater.
I am not, the house i reside in is a single family home in a decent residential area. The Tax benefit is a write off on up to 150k on property taxes, but i believe i need to be an owner occupant to keep that. Not sure if that plays a big part in anything. Just figured i'd mention it. So, it looks like the best option would in fact be to find a nice multi family home. I picked a sf home initially because it's more likely to find a tenant where i live.
As far as my goals, i am looking to essentially replace my current jobs income. Maybe a small goal to some, but i do not think it is too extravagant. I figure i would like to get 5-10 single-family/multi-family rental properties by the time i am 30 for sure.
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing