Save Money and Study OR Start Making Offers

[Bridget Y.]

I have a question that I have been dying to ask someone. Here’s the back story:

I have $16,000 principal in my Roth IRA and $9,000 cash that I can use to start my real estate portfolio.

My housing expenses will be going to almost zero within the next few months as I am doing an extreme form of house hacking (aka moving back in with my parents for a year). My parents need more help around the house and I want to save up money to start investing in real estate. It’s kind of weird to tell people I am going to be living with my parents again, but it’s a mutually beneficial deal!

So, my question is should I spend the next year saving money and learning more about real estate or should I call a realtor and start looking at properties in Mankato, Minnesota and making offers on a place that I can rent out while I am living with my parents?

I appreciate any advice you can give me.

[Michael Noto]

@Bridget Y. Given the savings picture you outlined I would save and learn for the year you live with you parents so you can hit the ground running when the year is up and you will be capitalized properly. Proper eserves are a must when you are getting into rental property in my opinion.