How to get started with low funds

2 Replies

I currently have 1k in credit card debt on one card, a auto loan under 11k and a atv loan under almost under 2k  My credit score is a 758 and i have only 10k in my savings.  I put all of this out there to hopefully give someone more info about me so they might be able to help give me a better understanding and hopefully a guideline.  Reading all the stories, books and listening to podcasts it seems like everyone has actual cash to fallback on as far as rehabbing, vacancy time and all that upon starting out.   The big question is am I able to start out giving my cirumstances with low funds? What would be the best route to consider? I wanted to look starting a house hack as a first time investment.

I am probably more conservative than most, but you asked so I will give my two cents.

House hacking is a great idea, but I don't think you are ready yet. If I were you I would a) become debt free b) save up an emergency fund of 3-6 months expenses c) save up a downpayment for the property you want to buy(even if just 5-10% down).

I know that will take some time to do, but in my opinion, starting from a solid financial foundations will prevent your investing from becoming a nightmare. Besides, paying off debt gives you a good rate of return, so I would take that guaranteed return before I started investing anyway.

Just my two cents,