To-be investor looking for starting out advice

6 Replies

Hey BP!

My name is Jon and I have been lurking around the site for about half a year now. I got interested in investing in general after basically googling "how do people get rich" I think haha. That led me to real estate investing and then listening to the BiggerPockets podcast while working all last summer. I have attended two meetups hosted by Deren Huang here in Tulsa and really enjoy meeting and listening to locals stories! My main goal right now is to achieve early financial freedom. I will start this by doing househacking in either a single family with friends or a small multi.

Here is where I have a question, right now I am in my final semester to receive my Bachelors in Mechanical Engineering from Oklahoma State University. I will graduate without any student debt or any other debt for that matter. I would also like to mention that I am a frugal person; enjoying Set For Life by Scott Trench so far. What I want to know is if I should be looking to move somewhere like Texas where my income will not be taxed; plus engineers seem to make more in Texas generally. I am not sure if Texas is a good idea because of the high property tax. I do not know the Tulsa Oklahoma all to well anyhow so there seems to be little reason for me to spend time learning this market if I can begin learning others now.

Hey Jon!

I didn’t see it when I clicked originally but glad I did see your post. I studied mechanical engineering myself but graduated in may of 2016. I’ve been out a bit already, time flies!

I went to another school in the B12 (in central Texas) so I won’t hold the fact that you went to OSU against you (kidding).

You can move to Texas if you want, great job market. I lived and worked in dfw for my first year after school. Rentals there will be more expensive. Property taxes are high but no state income tax is nice too. Tennessee also doesnt have income tax (just FYI)

I wouldn’t move just because there’s no income tax. Go where you can get a good paying job.

I’m up to 3 rentals myself now, so with no debt and a decent job you can make some headway pretty quickly.

Feel free to message me if you want to talk more

Originally posted by @Jon Wimmer :

Hey BP!

My name is Jon and I have been lurking around the site for about half a year now. I got interested in investing in general after basically googling "how do people get rich" I think haha. That led me to real estate investing and then listening to the BiggerPockets podcast while working all last summer. I have attended two meetups hosted by Deren Huang here in Tulsa and really enjoy meeting and listening to locals stories! My main goal right now is to achieve early financial freedom. I will start this by doing househacking in either a single family with friends or a small multi.

Here is where I have a question, right now I am in my final semester to receive my Bachelors in Mechanical Engineering from Oklahoma State University. I will graduate without any student debt or any other debt for that matter. I would also like to mention that I am a frugal person; enjoying Set For Life by Scott Trench so far. What I want to know is if I should be looking to move somewhere like Texas where my income will not be taxed; plus engineers seem to make more in Texas generally. I am not sure if Texas is a good idea because of the high property tax. I do not know the Tulsa Oklahoma all to well anyhow so there seems to be little reason for me to spend time learning this market if I can begin learning others now.

 IMO focus on a job and a location where you would like to live, imo the most important part of success as an employee is being happy.  I wouldn't worry that much about picking a city based on its real estate opportunities with the possible exception of avoiding dying cities.  Ie "Detroit" (just kidding, Josh made me say it)

From there the house hack idea sounds like a great idea.

IMO deals can be found in every city and every economy, even in "high priced markets".  As a house hack, consider buying as many units as you can (1-4), and make sure if you cant find any tenants that you are still able to make the payment.

My wife and I bought a duplex a few years ago, more important than a great return was finding a place we could afford and was in line with what we planned on otherwise paying for housing.  That way if we hated being landlords, or couldn't find tenants that we still ended up being able to pay the mortgage.

Best of luck to you.

Hi Jon,

Please don't move to another city for tax reasons, it doesn't make any sense specially early on in your career. Rather, focus on finding the industry/job you would have no issue waking up in the morning to go to. 

"Employees don't quit their job, they quit their boss" / Look for an environment where you can learn and get responsibilities. Personally, my first job was with a small trading firm, the salary wasn't great however I got opportunity to rotate different job roles + exposure to senior employees mentoring which in a big firm I would have never gotten, it was a priceless experience. the next job I took in the same industry but a bigger firm, I had an edge over the other employees because of that experience. 

So I would recommend to focus on the opportunity to learn, then the money will come. If you chase the money, it will never come. Money chases knowledge/expertise. 

Its great that you are already thinking of RE investment early on in your career, as someone said previously, try to build your assets on the side, till one day you can eventually jump ship and do it full time.

Best of luck :)

Originally posted by @Jon Wimmer :

Hey BP!

My name is Jon and I have been lurking around the site for about half a year now. I got interested in investing in general after basically googling "how do people get rich" I think haha. That led me to real estate investing and then listening to the BiggerPockets podcast while working all last summer. I have attended two meetups hosted by Deren Huang here in Tulsa and really enjoy meeting and listening to locals stories! My main goal right now is to achieve early financial freedom. I will start this by doing househacking in either a single family with friends or a small multi.

Here is where I have a question, right now I am in my final semester to receive my Bachelors in Mechanical Engineering from Oklahoma State University. I will graduate without any student debt or any other debt for that matter. I would also like to mention that I am a frugal person; enjoying Set For Life by Scott Trench so far. What I want to know is if I should be looking to move somewhere like Texas where my income will not be taxed; plus engineers seem to make more in Texas generally. I am not sure if Texas is a good idea because of the high property tax. I do not know the Tulsa Oklahoma all to well anyhow so there seems to be little reason for me to spend time learning this market if I can begin learning others now.

Hi Jon!  Take a look at Columbus, Ohio as a place to invest in property.  With the projected population and job growth over the next 5 years, as the state capitol and with OSU graduating 6000+ students a year, there is no shortage of folks who need to rent.   There is a tremendous amount of growth happening in Columbus at the moment.  Good luck with everything! 

Thank you all so much for the responses! It means a lot to me!

I will take all of your advice and look for a job that I will enjoy and learn from. I will be moving anyway when I graduate and I have the choice to go where ever, based on the job I choose. That is why I have been looking at other states both real estate-wise and engineering-wise. 

I am super excited to jump into the game and work hard for early retirement. But hey, my engineering position defiantly could be the something that I will not want to give up! I will find out when I get there! I just know how hard my family has worked for "the man" for years and years. I want to repay them for helping me get this far and have several options for myself in the future!

@Jon Wimmer i wouldn't let the location dictate where you decide to start investing.  Since you are just graduating, i would probably go where my degree takes me.  Once you get your feet wet you can always try longer distance investing, or move your operations to another location.  

I don't get much appreciation in my investing here in the midwest, but i get descent cash flow, and i am near my family, which is the most important thing.

My recommendation is to write down a list of priories, (family, career, real estate, friends) and use that to help with your landing spot.  In real estate investing, there is always a way if you want it bad enough, so you could make it work anywhere.

Congrats on the degree, and being debt free!

DJ

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

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.

Lock 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

Start here