Hello everyone! So I will come clean and clear on everything and get straight to the point.
These past few months I've gotten deeply interested in real estate. Im currently 18 and still finishing up some high school, but I am soon to be done. I currently own a home (where I live). It is a 3 bed 2 and 3/4 bath home on about 4.50 acres of land. So I am extremely lucky to not have to worry about mortage or rent at 18. I wanted to hear everyones thoughts on what I should do.
I recently got a small loan to get a head start on my credit since I have no credit history. I would love to hear everyones thoughts, because i am super interested in reap estate. Also, i would love to hear what you guys would do in my situation. Thanks!
Hey Zackary, you have unlimited options in the situation sitting where you are at 18. I'll give just one idea of a possible route to take and I'm sure others will provide different ones:
You could house hack the house you own outright (renting out the other two bedrooms for a profit on your home). I am currently doing this with three other friends and it works out very well. They pay the mortgage and my utilities (essentially living and owning a home for free - in your shoes you would be cash flowing).
Then, depending on what you are doing for a job (or college), it'd be good to establish yourself at work and save enough for your rainy day account (savings in case you lose your job) and then start saving more for a rental property. Depending on how much you can save and cash flow from your career/W2 income and house hack, you may be able to purchase another property in your first year. Or, you could pull the equity out on the home you own through refinancing and put that equity toward one or more rental properties.
The world is your oyster at this stage. Just stay focused and start investing early, it will pay off later.
Let me know if you have any questions about this.
Thanks so much man!
I don't think im up for a house hack. The house needs some fixes, but they really aren't major, and i could do them myself. I would estimate the cost around 10k... 20k...
However, I would really love to look into an equity loan, but I am really looking for a better job. I would love to rent out some properties with the equity loan. Like I said i am looking for a better job incase renting does not go as planned and i am stuck with a equity loan.
I definitely recommend what Benjamin said about House hacking. (Even with the fixes that are not major) That is a very good way to build up that cash flow on top of your job. In my opinion, I would rather want to build up savings before getting into a equity loan. The more capitol you build the better chance your success in real estate will be! Youll want to mitigate your risk as much as possible before going into a deal. And educate yourself as much as possible before going into your first deal and find a mentor! Your in a good spot to start your real estate investing
Hope you do well!