Getting started as a real estate agent and property investor
Hello everybody,
I have done a lot of research so far and know this is an approach I would like to take.
I am currently 17 and live near St. Paul, Minnesota. I am looking to get my real estate license as soon as I turn 18 (October) with a long term focus on rental properties. I want to basically reach financial independence as early as possible, but I don't want to retire early. I understand how I need to live way below my means and like a hermit and save everything, and I've been doing that. I have saved up $7000 since October because I've been working two jobs, coffee shop before school and kitchen after. (I start school at 10:20) and work about 45 hours, and then school. $5,500 is in a CD at 2.0%, and the rest is in a 1.6% rate at a local bank. I also am working under a very good agent soon to gain experience so that I can hit the ground running when I turn 18. I want to eliminate the busy work when I get started.
I also have been volunteering with a flooring company, a drywall person, and a house flipper who did the majority of the work himself to learn all of this. My plan is to buy dated multiplexes or single family homes and do stuff like counters, paint, and floors. I am comfortable with reglazing bathroom tile, painting cabinets (including liquid sand paper etc.) and some other basic remodels. I want to start out doing my own renovations and house hack so that I don't have many expenses to begin. I would then rent them out (never plan to sell) and keep doing that along with cash-out refinances. I also understand how cash-flow works and how to calculate it realistically like including vacancy and miscellaneous repairs (I'm not thinking like most people being optimistic, I do my math super low end for realistic answers) to see what my true net income will be.
For the real estate agent part, I know to sit every open house and to make 7 to 8 contacts everyday and will most likely door knock as well.
I also have a very good grasp on finances. I have started my Roth IRA, I have an emergency fund where I take money from each paycheck, and I also know how to begin my credit cards to build my score (obviously immediately paying off the money and never letting it even get to the next cycle, and how length matters, how my credit utilization matters, etc.). The main thing I want to get across is that I am thinking very practically about this and not just telling myself that I'll easily make over 100k a year and I can retire at 30, I understand how competitive it is and how difficult it is to make it through the first year. I also don't want to sound like a know it all because my research only goes so far. I don't want to sound overconfident, but I feel like I have a very strong start and I'm very confident in my ability to do this, and I'm just seeking more advice from anyone that will give it to me. I'd like to get as many opinions as possible and any tips and any recommendations would be greatly appreciated! Thank you!