Starting from Scratch
Hi guys any advice on what I can do with my situation or some best practices. My goal is roughly to have one or multiple properties, commercial or residential that can supplement my income. Goal right now would be like 3000 a month from x number of properties. The goal is Financial independence ultimately. I want to write books, have a podcast, give a ted talk and all sorts of stuff in my lifetime. The goal is not to stop working necessarily. To make that clear.
I'm 22 with 1 year until graduation. I live with my parents for this last year(0 rent). Im broke like less than 500 in the bank broke, just starting to save with a seperate allocated bank account. Currently unemployed from COVID, from a 10$/hr job. I'm thinking about househacking a hopefully 4 or 3 unit property that I still would have to find as well then finance etc. If possible I would like to get a property right now while I live at home and rent it out so that the rent covers PITI and maybe cash flows with no money put into it, or none of my money. I have an above 760 credit score for what it's worth but right now wouldn't be able to show a strong and reliable stream of income.
For those of you that have been through it or have achieved what I would like too. My main question is: What are some of the best properties to get with little money or but good return being that time is on my side? What path did you take?
Other things you can include..
Would brrr be the best strategy? Or househacking into a brrrr maybe. Curious to see what others did or what they have to say. How can I build a team and how did you around you? Go to REIA meetings and ask around? Go to an agency like keller-williams and ask around?
Thanks guys sorry for the length I will take the time to read any responses however! Answer to your own perspective and don't overthink it, How did you achieve your success? Did you have any similar obstacles and how did you overcome them?
Originally posted by @Max Ratner:My goal is ... to have ... properties ... that can supplement my income. Goal ... 3000 a month ...
I'm 22 with 1 year until graduation. I live with my parents ... (0 rent). ... less than 500 in the bank ... Currently unemployed from COVID, from a 10$/hr job. ... I have ... 760 credit score ... but ... wouldn't be able to show a strong and reliable ... income. ...
What I outlined above seems like your core overall goal, and core what must be overcome to get what you want.
Now what you need to do is make a workable plan to get it.
You don't need "The Best Plan" just a plan that seems realistically workable, because like everything else in life it will probably be a fluid procedure (vs a static plan) to get what you want.
A workable plan might be to figure out how much down payment and closing cost you will need to buy property number 1, and how much equity vs bank loan you will need to hit your monthly income goals vs what you have to put down on it as a minimum. Then to read the loan docs for the type of loan you intend to get, so you know the personal financial requirements.
Realize you will also need some kind of cash reserves to handle pop up problems so you don't lose renters, and will also have to have some cash to pay for any needed evictions. Plus you will need closing costs that cannot be wrapped into the loan or be paid for by the seller.
So concurrent with the above, maybe come up with a realistic workable way to get (for instance) $50,000 cash (you already have $500).
Focusing on the HUGE picture of wanting X cash flow and X properties has already pointed you in the direction you want to go. All you need now is to plan the first few steps, and then take action on it.
If you want to eat a steak you eat it in workable bites, not by trying to gobble the whole thing at once.
And from your main goal it seems like you are focusing on "Cash Flow" which is a good determine if that's what you want upfront, because it will help to aim your efforts where you want them.
And if you have not read Rich Dad Poor Dad, do so. It's a good read.
Good Luck!
@Max Ratner live with your parents as long as you can and save as much as you can. Focus on getting a decent W-2 in the meantime to be able to save quick and qualify for a loan when the time comes. When that does come, house hack a 2-4 unit property using an fha loan to put 3.5% down. That’s the best way to get started. You can take that route and learn along the way.
Best of luck!
