What to invest in as a 23 year old?
I am 23 years old and I would like to invest in real estate. I am not a homeowner but I do have good credit. I am thinking about buying a multifamily home in order to collect additional income from rent. I plan I saving 50% of rent income for repairs & turnover and use the remaining to pay off mortgage, taxes and insurance.
Any thoughts or advice?
Sean
@Sean Agid, one thing I regretted at 23 was not buying the duplex I was renting in when the owner put it up for sale. I would suggesting going that route. Live in one side, rent the other, pretty much covers the whole mortgage and you live free. Almost. Stay a couple years and move up, keep it and cashflow. Great way to get started and you can get a FHA loan to boot.
@Sean Agid Welcome to BP.
I think you answered your own question in your post. BiggerPockets is going to be a great resource for you.
Set up you keyword alerts for Providence and Rhode Island.
-- Know where you want to invest. Do you want to rent to students? Professionals? Blue collar families? Know where each of those types of people are living in your city.
-- Getting in young can be a nice advantage and you are certainly more risk tolerant - but mistakes can still be made if you buy wrong.
Learn as much as you can here. Then if you have the funds and drive on top of that knowledge... take action!
Best of luck... I invest just north of you in MA - feel free to connect.
Hi Sean! i agree with Christopher. The one thing I regret was not purchasing a duplex as our first home. Its a great way to build wealth, and live almost free. I am now a Real Estate agent. If you are looking to purchase rental property in Rhode Island, I can help with that. You can private message me. I will be happy to help you find exactly what you are looking for.
Sean, it sounds like you're off to a good start! As James said, Bigger Pockets has many good resources to help you with your goals.
I'd recommend: Start small (e.g., a SF you won't live in or a duplex), learn, then do it again until you're comfortable and only then move up (3, 4 or more units).
I'd also recommend networking with other real estate investors in your area. For example, the RI Real Estate Investors Group (rireig.com) has a meeting this evening, and Black Diamond Real Estate Investors (blackdiamondrei.com) in southern Mass meets twice a month.
I recommend those two groups because they are educational and don't try to sell you things. You're looking for contractor recommendations, the latest news on legal issues affecting landlords, and lots of other related things that will come up if you attend meetings like those regularly.
Between BP and local networking you should have a lot to get started with. Good luck, and you can always post specific questions here on BP too of course.
Originally posted by @Sean Agid:
I am 23 years old and I would like to invest in real estate. I am not a homeowner but I do have good credit. I am thinking about buying a multifamily home in order to collect additional income from rent. I plan I saving 50% of rent income for repairs & turnover and use the remaining to pay off mortgage, taxes and insurance.
Any thoughts or advice?
Sean
Hi Sean,
Start off small to minimize your risk. The lower the $ amount invested the lower your risk will be.
Keep immersing yourself in anything and everything real estate and you will eventually start finding a strategy that will best suit you.
Well done on looking into this industry at such a young age.
I also started when I was 23 ;)
Thanks and have a great day.
