Hello Everyone, my name is John and I work as a Stationary Engineer in the State of Maryland (Close to DC). As you can tell by my title I am 22, have no debt, make around 120k a year and I am currently living at home. I want to get into real estate to begin my journey towards financial freedom, but I am confused on which route to go. Should I first look at a house for myself? Should I invest into a rental property? Should I flip? With the housing market being the way it is in MD should I look for an out of state rental or flip? And after all of that should I try and pay for it all myself or look for other investors? I am just a young guy looking to make a step in the right direction in the real estate world, any and all advice would be greatly appreciated. God Bless you all!
It all depends on what you want to do and your skills. If you aren't familiar with renos, I wouldn't do a flip (or at least not start with that). Start by determining how much you can borrow for a mortgage and then save for the down payment (assuming you don't have it already).
As for buying a home for you or a rental, it depends on costs on your area. One option is to buy a duplex, live in half (so you can put less money down) and rent the other half. You can move out after a year or two and rent both halves. The rental income from one half should cover over 50% of the costs and allow you to live for less than you currently are. If houses in your area are too expensive or the numbers don't look good for a rental, find a place where the numbers work that is nearby and in an area you know. Buy it as a rental and then keep renting your current place. If you don't live in it, you need 20% down.