Rookie Real Estate Investor - Taking My First Steps

Rookie Real Estate Investor - Taking My First Steps

Rental Property Investor · Kansas City, MO · Member since 2021 · 26 posts · 8 votes

For a few years now I have been interested in investing in real estate. From an oddly young age, I've always had the mindset to acquire as many assets as possible and limit wasteful spending on liabilities. When I entered college 5 years ago, something didn't sit well with me knowing I was paying over $10K a year to live in a dorm room. So after my first freshman year, I found a 3 bedroom townhouse, got my parents to purchase it, lived in one bedroom, and rented out the other two bedrooms to some buddies of mine. Now about four years later, I look at that as a great deal for my parents: I was able to live basically for free, they still collect passive rental income from new tenants to this date, and have built significant equity into the property. 

Currently, I am a 22-year-old structural engineer who recently moved to Kansas City for a great job out of college for a big construction-engineering company. I want to build a portfolio of rental properties as a way to build passive income for myself and the future I am envisioning. My barrier so far has been my off-and-on focus on actually learning and taking action towards my real estate goals. Last night I finished @Brandon Turner & Joshua Dorkin's BiggerPockets book: How To Invest In Real Estate - The Ultimate Beginner's Guide to Getting Started, and this book truly has taught me so much and given me actionable steps that I will take to pursue my real estate goals. I can't praise this book enough, especially for young people who want to get into real estate but don't take the next steps because of self-doubt regarding success and failure. My biggest takeaway other than learning a wealth of information regarding the real estate industry was that none of these currently successful real estate investors had it all figured out when they were starting out either! They did the proper planning (sometimes) and just went for it. 

My current goal is to close on a duplex, triplex, or quadruplex in the Kansas City area before my lease being up this summer. I can't wait for this adventure, to connect with more individuals in the area, and continue to learn as I start my journey in the real estate world! 

P.S. I hate reading and can't tell you the last book I read, yet I finished this book in less than two weeks... 11/10 I recommend this book for everyone just getting started in real estate!

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  • Investor · Jacksonville, NC · Member since 2018 · 193 posts · 107 votes
    5y

    Congrats and welcome! Sounds like you are in the right path, continue to read books, listen to podcasts, watch videos and attend local meetups.

    Immerse yourself in the environment and you will be ready to take that leap. Consider taking advantage of the owner occupied loans (1-4 units) where you can get in a nice MF for little money out of pocket!

    Best of luck!

  • Rental Property Investor · Bloomington, MN · Member since 2019 · 404 posts · 542 votes
    5y

    @John Daniel Sounds like you have a great plan. And yes, as someone with 11 units currently (mildly successful) I can confirm that I did not know what I was doing when I got started. I’m still learning.

  • Investor · Bend, OR · Member since 2020 · 11 posts · 10 votes
    5y

    Congrats John! I am on an eerily similar path, although I am based in Oregon and looking to invest OOS in the greater Kansas City area. You may already be ahead of me since you live in the area, but I’d be happy to connect and share what I’ve learned so far if you’re interested! DM me if you’d like and good luck!

  • Dave VodarickPro Member
    Contractor · Kansas City, KS · Member since 2019 · 26 posts · 13 votes
    5y

    @John Daniel Congratulations and welcome to Kansas City! I am a transplant to the area that fell in love and decided to stay! 

  • Rental Property Investor · Kansas City, MO · Member since 2021 · 26 posts · 8 votes
    5y
    Originally posted by @Colby GeDeros:

    Congrats John! I am on an eerily similar path, although I am based in Oregon and looking to invest OOS in the greater Kansas City area. You may already be ahead of me since you live in the area, but I’d be happy to connect and share what I’ve learned so far if you’re interested! DM me if you’d like and good luck!

    Thank you! That's awesome to hear, I think there's a lot more of us on this similar path than we think. If there's also anything I've learned is that growth comes from learning from others. I will definitely direct message you so we can learn from each other! 

  • Brandon GoldsmithBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2020 · 1k+ posts · 1k+ votes
    5y

    Congrats on setting your goals and finding the drive. I am getting ready to house hack here myself. @John Daniel

  • Rental Property Investor · Kansas City, MO · Member since 2021 · 26 posts · 8 votes
    5y
    Originally posted by @Chris Tarpey:

    Congrats and welcome! Sounds like you are in the right path, continue to read books, listen to podcasts, watch videos and attend local meetups.

    Immerse yourself in the environment and you will be ready to take that leap. Consider taking advantage of the owner occupied loans (1-4 units) where you can get in a nice MF for little money out of pocket!

    Best of luck!

    I appreciate the advice! I've changed from listening to music to having BiggerPockets podcasts on while I workout now, have a list of reads ready, and am continuing to meet up with people in the area! 

    I will definitely look into that loan option. Will an owner-occupied loan work for a house hack or is would it be considered an investment property at that point to the government? 

    Thank you for the encouragement and guidance Chris! 

  • Rental Property Investor · Kansas City, MO · Member since 2021 · 26 posts · 8 votes
    5y
    Originally posted by @Brandon Goldsmith:

    Congrats on setting your goals and finding the drive. I am getting ready to house hack here myself. @John Daniel

    Brandon, I appreciate it. Best of luck with your house hack! Would love to connect with you and exchange thoughts on how our experience in this house hacking goes!

  • Rental Property Investor · Kansas City, MO · Member since 2021 · 26 posts · 8 votes
    5y
    Originally posted by @Dave Vodarick:

    @John Daniel Congratulations and welcome to Kansas City! I am a transplant to the area that fell in love and decided to stay! 

    Thank you for the welcome! I moved here during the pandemic in August after attending the University of Alabama (Roll Tide), can't wait to experience everything this city has to offer post-covid. The one thing I have still not come to peace with is this weather haha! 

  • Rental Property Investor · Kansas City, MO · Member since 2021 · 26 posts · 8 votes
    5y
    Originally posted by @Corey Hawkinson:

    @John Daniel Sounds like you have a great plan. And yes, as someone with 11 units currently (mildly successful) I can confirm that I did not know what I was doing when I got started. I’m still learning.

     That seems to be the common theme I am learning... nothing like "on the job training". Being part of this industry and continuing learning counts as wildly successful for me!

    Did you house hack and then continue to acquire more residential rental properties? 

  • Mike D'ArrigoPro Member
    Turn key provider · San Jose, CA · Member since 2010 · 4k+ posts · 3k+ votes
    5y

    @John Daniel you're fortunate that you live in a great real estate market. We've been active in Kansas City for nearly 10 years and have had a lot of success. The key is buying in the right areas. 

  • Rental Property Investor · Kansas City, MO · Member since 2021 · 26 posts · 8 votes
    5y
    Originally posted by @Mike D'Arrigo:

    @John Daniel you're fortunate that you live in a great real estate market. We've been active in Kansas City for nearly 10 years and have had a lot of success. The key is buying in the right areas. 

    I feel very fortunate to be living in the Midwest in a city that offers a lot with a very affordable cost of living. I believe this will help in finding long-term success in real estate. Are there any specific area codes you recommend I start taking a look at?

  • Mike D'ArrigoPro Member
    Turn key provider · San Jose, CA · Member since 2010 · 4k+ posts · 3k+ votes
    5y
    Originally posted by @John Daniel:
    Originally posted by @Mike D'Arrigo:

    @John Daniel you're fortunate that you live in a great real estate market. We've been active in Kansas City for nearly 10 years and have had a lot of success. The key is buying in the right areas. 

    I feel very fortunate to be living in the Midwest in a city that offers a lot with a very affordable cost of living. I believe this will help in finding long-term success in real estate. Are there any specific area codes you recommend I start taking a look at?

    John, zip codes are usually too geographically broad to be meaningful. You can have good areas and bad areas in the same zip code. It all depends on what class of property and neighborhood you are looking for. We focus on the suburbs outside of the 435 loop such as Independence, Raytown, South Kansas City and Grandview. These are mostly B and C class areas. I like South Kansas City near the Cerner Corp headquarters. 

  • Rental Property Investor · Kansas City, MO · Member since 2021 · 26 posts · 8 votes
    5y
    Originally posted by @Mike D'Arrigo:
    Originally posted by @John Daniel:
    Originally posted by @Mike D'Arrigo:

    @John Daniel you're fortunate that you live in a great real estate market. We've been active in Kansas City for nearly 10 years and have had a lot of success. The key is buying in the right areas. 

    I feel very fortunate to be living in the Midwest in a city that offers a lot with a very affordable cost of living. I believe this will help in finding long-term success in real estate. Are there any specific area codes you recommend I start taking a look at?

    John, zip codes are usually too geographically broad to be meaningful. You can have good areas and bad areas in the same zip code. It all depends on what class of property and neighborhood you are looking for. We focus on the suburbs outside of the 435 loop such as Independence, Raytown, South Kansas City and Grandview. These are mostly B and C class areas. I like South Kansas City near the Cerner Corp headquarters.

    Hey Mike, great to know! That makes plenty of sense, a zip code is definitely too big to be meaningful. I will continue to look around and become more aquainted with the neighborhoods to find where the good areas to invest in are. Class B properties are the ones that I have been looking at so far. Right now I am looking for duplexes in South KC closer to where I work to do a house hack. 

  • Member since 2019 · 7k+ posts · 4k+ votes
    5y

    If you're structural engineers and have network in construction engineering, you have unfair advantage with your knowledge: eg you'll know which house/MFR that has building issue and how much does it cost really. Collecting rental property is easy, but creating a value-add invewtment from your knowledge/skillsets that's fantastic.

  • Rental Property Investor · Kansas City, MO · Member since 2021 · 26 posts · 8 votes
    5y
    Originally posted by @Carlos Ptriawan:

    If you're structural engineers and have network in construction engineering, you have unfair advantage with your knowledge: eg you'll know which house/MFR that has building issue and how much does it cost really. Collecting rental property is easy, but creating a value-add invewtment from your knowledge/skillsets that's fantastic.

     Carlos, don't know how I did not see your response! But that's awesome to hear. Hopefully, I can build that knowledge base here in the construction industry for these value add investments!

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