Where do i start when i want to end up in real estate investing

10 Replies

I have recently been reading, listening, and learning a lot about different ways to earn financial freedom but I am just not sure where to start. I am only 23 with 2 kids and a girlfriend, we are currently renting and i am 23k in debt making about 60k a year as a single income family. I want to eventually own some form of rental properties but i know i need to get my personal financial life in order first. I have started going through bank statements and plan to set my budgets this month. I am wonder if anyone would have some guidance or advice that would help me on my way out of this rat race we call life.

@Thomas Rodgers

You are already on the path if you're creating a budget. My advice is always more conservative in nature, but I will start by reading Dave Ramsey Total Money Make-Over. I can't entirely agree with his investing philosophy in using debt, but his baby steps work. I was in debt in 2019 and struggled to find extra funds for investments and always seemed to be pulling money out of saving each month to maintain the quality of life I needed. I read Rich Dad Poor Dad and Total Money Make Over, which changed my life. One suggestion is not to read every single book out there because you will spin your wheels. Read the top-recommended one and implement the systems in the book Vs. Moving to the next book and not taking action. 

Once you have your loan debt paid off, I would start saving for an emergency fund in terms of real estate. One strategy I use for investing is to have $5,000 saved per home before purchasing it. I still save a month from the revenue toward CAPEX, but this allows for some cushion. Once you have your reserve funds in place, find a low to no money down (read Brandon Turner's book) strategy and start to house hack. 

Sincerely,

@Joshua McMillion i appreciate the reply and i have read rich dad poor dad and some other in the rich dad company and started reading some bigger pockets books all so far has had some great information i will definitely read dave Ramsey’s next. You your saying to focus on paying off consumer debt before saving and once i would have $5,000 left over after closing on a house is when i know im ready for my first purchase? And do you think house hacking is still feasible with a family because while i entertain the idea of doing if and believe its the best way to start my spouse does not seem so interested.

@Thomas Rodgers

There are multiple different types of properties to go about house hacking. Lots of people house hack with their family living in the same property. If you learn up on it and can give a clear picture to your girlfriend of what it would look like and how it would effect your lifestyle, then you both can better make an informed decision on if it is right for you. But it is definitely a great step towards financial freedom.

@Thomas Rodgers

Mathew Brill hit the nail on the head. Your imagination is the limit when it comes to house hacking. You need to be able to articulate that to your significant other clearly. If you're having a hard time getting her to see your vision for the future, I recommend reading Vivid Vision and using the principles in that book to create your own Vivid Vision. I used that method to show my wife our path through REI. 

On the saving piece, that is just my opinion. I am a fan of investing from a position of strength and mitigating risk. I would recommend paying off your consumer debt and saving a small portion as a strategic reserve. 

Sincerely,

Originally posted by @Thomas Rodgers :

@Matthew Brill thank you do you have an opinion on when a good time to move in a house hack would be or is it an asap kind of thing

As long as the deal makes sense the day you buy it, then it is a good time to buy it.

From the lender's perspective, they will expect you to be moving in once you close. There is some leniency, especially if you are doing a rehab.

@Matthew Brill thank you i really appreciate it the responses so the way i see it is first get my finances under control then build up the down payment on the house hack then start looking for a suitable house. Now would you recommend i do the 3.5% down and using any grants available to help speed up the process at the expense of pmi or wait till i can do the 20%