Starting My REI Journey

[Michael B.]

Hey BP Community,

I'm a high net worth (lower middle six-figure) individual in his early 20s just exploring the world of REI for the first time. I've been working, saving, and investing since I was 15-16, and the stock market is great, but I'm worried about a slowdown, and also hoping to be a bit more active on my path to FI. I live in the suburbs of New York City, which is, of course, a very expensive area of the country. While I'm sure there are deals, I have a few concerns and would love to hear your thoughts:

1) My Job—I work at a startup, and, including commuting, work consumes about 55-60 hours of my week, not including any other hours on the weekend. I’m worried that I won’t have the time I need to really do this right. How many hours have you found you spent on your first properties?

2) What type of property—Excluding the five boroughs, I live within 2 hours of 5 Opportunity Zones. Should I be looking there to try and capitalize on those newly established tax benefits, or do most of you expect those will go away once the Trump tax cuts expire? The other thing that I’m thinking about is house hacking, I also figure it may help with question 1 and the time, since I’ll be living right there.

3) Personal Life—I’ve been with my girlfriend for over five years, and marriage is on the horizon once she finishes her graduate program (another two years or so). For anyone that’s faced a similar issue, how have you balanced budgeting your own life, an investment property, and a big life landmark?

Thanks so much! I feel so lucky to have stumbled across this group, I’ve learned a lot just lurking in the forums, very excited about being more active.

Best,

Mike

[Steve Vaughan]

If you're renting now, I'd househack in my own name since you're not yet married.  Buy a plex. Learn the ropes as you go and sell tax-free in 2 yrs +. 

Funny you're moving out of equities and into RE.  I'm doing the opposite.  Landlording has a shelf-life and I've about had my fill.  I make almost as much trading 52 week low ETFs with no hassles but I hear you on the frothy levels of broad index buying.  At each new high, I'm shaving my long-term positions down.

Great opportunity to buy a modest house-hack close to your work as possible.  Read Set For Life by Scott Trench. Go get 'em!