Updated over 5 years ago on . Most recent reply
Beginner in Real Estate Investment while Paying Own Rent
My name is Sean and I've been interested in real estate investment for a few years now. I am just over a year out of college and began researching real estate and how the investment process works a couple of weeks ago (the goal is to buy my first property next year -- 2021).
Currently, I am renting an apartment in the Buckhead area of Atlanta, GA and I really enjoy this location and the amenities/community of the building. It seems like the only way I'll be able to afford my first investment property is if I took my monthly rent and put it towards a "house hacking" property where I would basically be living with a random person (which also makes me nervous).
I'm wondering if this is pretty much my only option if I want to move forward with real estate investing or if anyone has some tips about how to have the best of both worlds? Has anyone gotten into real estate investment WHILE paying their own rent somewhere else; does this sound like a dumb idea; all suggestions are welcome?
Most Popular Reply
@Sean Ramuchak I would suggest only moving forward if you can afford it. House hacking is great, but realize you are a landlord and subject to landlord tenant law. Always be able to pay the entire rent on your own and have money for reserves. If things aren’t fixed tenants can legally withhold rent or even sue. If they stop paying you’ll have to pay to evict them all the while having to pay your mortgage on-time all things you don’t have to worry about as a renter. Real estate is a great wealth generation tool, just make sure you aren’t taking too great of a risk.