@Clay Rikard study up and learn about real estate as much as you can while you're in college and then when you get out house hack a 3-4 unit. Also study up and become an expert in the market you are looking to invest in. Use an FHA loan with 3.5% down and utilize the 6% seller assist and you'll be able to acquire the property with very little out of pocket. Then after a year or two you can move out and make this an investment property while you move onto the next one. Next move could be a single family you live in using a 5% down conventional loan, also very little out of pocket.
Appreciate the response Jeremy! What do you mean by house hack a 3-4 unit?
@Clay Rikard You buy a 3-4 unit property and live in one of the units along with renting out the other units to pay your mortgage. Ideally the rents from the other units will be more than your mortgage and you can put money in your pocket every month as well!
Welcome. Start with Wholesaling to get your feet wet. You do not need a real estate license to get started. This strategy helps you fine tune speaking and negotiating with motivated sellers, contract management, locating and communicating with cash buyers as well as building a team. All with minimal capital and risk. There's a ton of information about this strategy on Bigger Pocket forums & discussions. Dive in
Originally posted by @Clay Rikard :
I am 20 year old college student looking to get into rental property sometime soon. I’m sure some rules vary from state to state so I threw in the fact I’m from Louisiana. What would y’all recommend to a newbie with not a ton of capital. Thanks!
Love seeing people starting at such an early age. Myself I bought my 1st property at 21 years old. Today I manage a $50M+ portfolio.
What you want to do is buy yourself a nice 2-4 unit using an FHA loan. You will only need 3.5% down to finance it. Your other tenants should pay the majority of your living costs & help you smash down that principal. After 12 months go ahead & move out, rent the last unit & do the whole thing all over again.
Attend various REI meetings. Get your network going and establish your credit. If you have not yet, you need to work on that FIRST and foremost. You must build a proper foundation for yourself (no pun intended) before hitting the ground running.
Go out there and get some capital. Get creative, flipping burgers won't do. In the meantime, get to know your market. You should know every street in your town. What is for sale, what has sold, how much is rent based on location, etc. When you know what a good deal looks like, you will know one when you find it. Find a good deal and you will find someone willing to buy it from you.
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