Clayton, NC · Member since 2015 · 79 posts · 19 votes
So I have done a lot of research as well as been to a few seminars but I haven't be able to find any real estate investors in my local area. So next week I'm going to make the 2 hour drive to the closest REIA. Hopefully I will meet someone there who will be will into show me a few things in return for me adding value to them whatever that may be, such as a free intern, free tech support (in the last yea of getting a computer science degree) or just free labor worker for there properties. But the one question I have is that I'm only 21 and want to do buy and hold investing for the long term because I love my current IT job but I also love real estate as well. Should I go out and buy my first house and live in it for a year then try to rent it out? Or should I buy it, rent it out then continue to live in my condo I live in now?
I absolutely love the idea of starting out with a duplex that you live in one side and rent out the other. I never did it, but if I could go back in time I would. A SFH that you live in and fix-up then rent out may be the next best thing.
Be careful loading up on properties with little down, little cash reserves, and 30 year mortgages starting out for rentals.
I hear of many people doing this, but after 6 years owning commercial/residential property I would be cautious. Many get in terrible situations doing such. The ones that do great are buying deeply discounted properties and adding value or gambling on price appreciation in great RE markets that have benefited from the market rebound following the recession. The latter could play out at any moment.
The first 10 years of a 30 year mortgage is basically paying interest. A lot of wear and tear can occur in a home over the course of 10 years with renters.
@Becca Summer ok thanks for answing my question it was very helpful, @Andrew T. I was actually thinking about doing a rent-to-own with the house price being $50,000. And I found a property (condo) that I could buy and rent it out while I do the house hacking thing in the rent to own because they house is a sfh and needs a little work to it. What you think of this?
You're going to house hack a SFH?
Also, be cautious with condo's. Investors either love condo's or hate them due to HOA's
@Nicholas Armstrong I think I'm going to start out doing live-in-flips I been working for my dad remolding business since I was a kid so I know how to do most all remolds but I will only be looking for ones with minor or cosmetic problems nothing major like needing new roof or plumbing systems.
I think your question can be answered based on the strategy you are following are you going to be a buy and hold investor or a fix and flip investor? It all depends on your strategy
@Melissa Gittens I am actually going to do the BRRRR strategy ?(Buy,Rehab,Rent,Refinance,Repeat) This way I am able to still do my buy and hold strategy and I will be using/partnering up with a private lender hopefully soon I am still looking for one but I have already done all the research and I know the areas I am investing in and I know the ARV as well as how much to charge in rent. There is alot more behind my BRRRR strategy that I won't go too deep into because it would be too long but, yes I have pick this one strategy to focus on now.