Advice for a beginner

[Thomas Mackay]

I’m currently in my early 20’s and am getting ready to start house hacking. My ultimate goal is, like many of you, to become financially independent through rental properties. For this first property I’m thinking of a townhouse - anyone have experience with these properties? Are they good cash flow?

Igor my second deal I’d like to go multi-family either next year or the year after and continue growing my portfolio from there.

Any advice for a young would-be investor looking to grow their portfolio?

Any advice is much appreciated.

[Daniel Haberkost]

Originally posted by @Thomas Mackay:

I’m currently in my early 20’s and am getting ready to start house hacking. My ultimate goal is, like many of you, to become financially independent through rental properties. For this first property I’m thinking of a townhouse - anyone have experience with these properties? Are they good cash flow?

Igor my second deal I’d like to go multi-family either next year or the year after and continue growing my portfolio from there.

Any advice for a young would-be investor looking to grow their portfolio?

Any advice is much appreciated.

 Hi Thomas, 

If you're going to start with house-hacking be sure that the numbers work on the property even if you're not living there. Also, make sure you have your systems down for screening tenants. Background/credit check, talk to their last two landlords and talk to their boss as references. Make sure you're standards/expectations are clear (i.e. don't make noise past 9pm, cleanup after using the kitchen, etc.) Do a move-in inspection report on their room and have them sign it so there is no ambiguity as to the condition of the room when they moved in. 

I wouldn't worry too much about future deals until you get the first one under your belt. I've never owned a town home but I believe they often come with hefty HOA fees. However, if the numbers work it doesn't matter!

Good luck!

-Dan