Where do I even begin

Question

Recently I have really wanted to get into a real estate and a buddy of mine told me to start listening to the Bigger Podcast podcast. After listening to 5 shows, I am hooked on beginning my journey. A little background, I am 21. Recently completed my degree in accounting and work for a mid size firm in Nashville TN. Currently working towards my CPA along with a MBA. I just recently started a real job so my disposal income is maybe $1,000 a month. No student debt or any debt for that matter. My fiancé is currently building a house in our hometown but my name is not on anything as it is a gift from her father. There is a small growing area of Clarksville which is about 45 minutes north west of nashville and is prime for growth. I understand now is not the best time as the market is highly coveted at the moment. What steps should I take? I’m not afraid of financing, but I am afraid to just hop into something without a good basis of understanding. I’m interested in all aspects, but I’m not really convinced that I want to become an agent. Any suggestions on where to begin, what to read or research? Thanks.

JD Martin · Answer

OK! Well welcome to the site. Congrats on at least starting from zero - a good number of people who land here are starting from deep in the red. No student loan debt or any other debt is a great starting point. Keep your current job, pare your expenses as close to zero as you can for the time being. Don't switch careers - you can do very well in accounting and understanding money is a primary skill you need to be successful in real estate.

1. House hack - the fastest way to get started in real estate. You need to live somewhere, so why not live in a duplex/triplex? Rent out the other two units. Live in the smallest/crappiest unit to maximize your return. A variation on this is renting out rooms in your house, which some people can dig and others (like me) would be in hell. In any case, you can get traditional financing on a 2/3/4 unit that you're living in one of the units, you get a waiver from some of the fair housing act stuff on your first place that you are living in.

2. Once you get a chunk of money saved up from house hacking, move and do it again. Poof! Just like that you've got 4/6/8 rental units.

3. If you're required to live in the house your fiance is building for obvious reasons (you're married and it would be weird living in separate homes in the same town), then buy the 2/3/4 unit now while you're not married, and rent out the third unit once you are married. You only have to owner-occupy for 1 year for most types of loan products.

Tony Clark · Answer

@JD Martin love that advice! @Dakota Shuck I think house-hacking would absolutely be your best bet. You could also look into some low and no down payment options available. In addition to purchasing a place where you can live for close to free, you’ll also be capitalizing on the appreciation Nashville is seeing as it continues to grow. You’re absolutely on the right track, happy to grab coffee or a beer and talk through house hacking - pumped for you to start your house hacking journey!

Keith Morgan · Answer

I am a licensed Realtor, business owner, and property manager in Clarksville. I have been a resident for 10 years now so I have seen and been part of the growth. I would start with a business plan. No matter how active you plan on being in the real estate industry, you ultimately want a return on your investment. Surround yourself around those who are like-minded and build trust with each other. Networking groups for investors, realtor associations, and even attending city council meetings. Clarksville has many groups that you do not have to pay for to attend but gain a lot of knowledge from. This will help your confidence and bring together a team of trusted advisors. As you learn and surround yourself with like-minded individuals, you will start to put together some systems, processes, cost analysis, and other marketing research that will help you make informed decisions rather than just "a hope and a prayer". I strongly suggest due diligence in any situation before making a decision. I hope this helps you out Dakota.

Feel free to reach out at any time.

Where do I even begin

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