Where do I begin investing?

Question

Hello, I am just starting my journey and thought i get some feedback. Im interested mostly on the rental side of real estate. Is looking for numerous single family homes in different locations better than syndicating a multi family property for a first deal?

Cassi Justiz · Answer

Hi Victor,

It's hard to give you advice without talking numbers and personal finance. But advice that I give to my younger clients is to try to find a house to live in and house hack it if you are willing to do that. It's a lot easier to qualify for a loan for a primary residence than it is for a rental property and you can get roommate(s) to pay the majority if not all of your living expenses.

The big thing here is that it doesn't have to be a multifamily to house hack. If single family properties make more sense in your area or for your financial position, then go for that. You can buy a single family property in a desirable rental market and then get roommates while you live there.  Once you have saved up enough money for another house, move out of your first house and do it again.

If you have the capabilities to syndicate or buy a portfolio, then that's great! But you can't go wrong with decreasing your living expenses either. If you haven't read Scott Trench's book Set for Life, it's definitely worth a read.

Victor A jimenez · Answer

@Quito Keutla thanks for the advice!

Quito Keutla · Answer

@Victor A jimenez one of the first thing I recondmend is investing in your own education. REI is a long game and the more you learn and applied the knowledge you mitigate your risk.  @Cassi Justiz mention house hacking is a great way to start, I just helped a younger couple do the same thing and they are actually saving $800 vs renting.  However if you qualify for a quad with FHA 3.5% down that would be a way to go as long as it pencils out for you. Happy Investing!

Victor A jimenez · Answer

@Cassi Justiz Thank you for the feedback and book recommendation. Just picked it up a copy, I'm looking forward to a good read.