2 buddies and I are just getting started and want to know what the first step should be. We’re taking classes to get our real estate licenses and get our foot in the door but I’d like to move faster. I bought a home about a year ago and fully understand what a liability is. What is the first step for us to invest? Can I leverage my current home for capital? I have about 30k I’m okay with investing at the moment. Just want to know what the smartest move is given my circumstances. I have a good paying job and have proven sales success but I’m ready to exit the rat race.. please advise!
@Pablo Miguel Hernandez if I were in your shoes I would sell the liability provided you don't need your home for family/other reasons. House hacking is the simplest way to gain two or three properties very quickly. Use your 5% down conventional loan to buy a 3 or 4 unit, and then immediately use your FHA 3.5% down loan six months later for your second property.
The real estate license can be nice, and I have enjoyed being a realtor. Just decide how much money, time and focus you want to spend on your license. The access to the MLS won't give you that much more knowledge than you already have, so don't expect to suddenly see tons of deals that you haven't been seeing. The biggest advantage I have had as a realtor is access to other real estate professionals who I have done business with and have built a relationship with. I really haven't used the license to get in on deals that other people don't see.
@Pablo Miguel Hernandez the 5% down conventional loan is an owner occupant loan. It allows you to buy up to 4 units with as little as 5% down, and is a far superior loan to the 3.5% FHA loan in my opinion! If you want more specific details, you should really contact a local lender. Anything beyond the advice I have given you always gets referred to my lender of choice, even when I am working with clients here locally.