I am a 23 year old aspiring RE investor in Western New York, currently I am working on becoming debt free by Fall of 2018; finishing off Student loans and Car Debt (Silly mistake I made with first real paying job). I also plan on having 10k saved up to put down on a home or to invest in Real Estate. I am looking to either buy a move in ready home or should I do find a fixer upper, in which both I would house hack. I am very motivated to do the fixer upper because I love the idea of turning something into a nice project, however I am scared that I will be dealt with a bad contractor and throw money out the window.
Also any advice that could help me prepare for my career in Real Estate :)
Any help is appreciated
@Victor G. Welcome to BP! I suggest that you start attending the local REIA meetings and build relationships with local investors. They will be able to help you identify the best service providers (contractors) to execute your project and avoid throwing money out the window!
Do you have experience renovating homes? It's nothing like the reality shows. Even professional contractors tend to crack open a project and realize the situation is worse than they expected.
I recommend finding a duplex, triplex, or fourplex that enables you to maximize your return while occupying one of the units.
How to prepare for a real estate license? Save money. I seriously recommend you have a year of living expenses set aside so you can focus on real estate without worrying about how you will pay the electric bill.
Good morning Victor,
I think house hacking a multi-family property is a great way to get started in REI. You'll gain experience during the acquisition phase thus teaching you what it takes to get a deal done. You'll also gain property management experience while occupying one of the units- you can live free or significantly reduce your living expenses!
@Nathan G. Brings up a great point regarding doing your own rehab. You're either doing it yourself of paying a premium for someone else to do the work. 203K loans are great because they allow you to finance your renovation costs. Of course, your mortgage will be higher because you've tacked on the cost of the rehab but the upside is that you can get into the property with less money down. It all depends on your goals and current situation.
A safer bet would be to get something thats "move-in ready" which would be priced higher than something that needs work.
A lot to think about but you're definitely on the right path. As @Ryan Cox mentioned, attend local meet ups and build relationships. Keep posting on these forums and reaching out to people in your market who can help you gain the knowledge you need to make an informed decision.
Best of luck to you!
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