Complete noobie question

4 Replies

I'm 28 years old, male. I do not own any property, I'm currently paying rent for a room to live. I have 10k in savings, and 27K built up in an IRA.

I'm looking to get out of my current housing situation, and I'm wondering what my first steps should be, should I look to purchase a home for myself, so that i'm paying myself and not losing rent money every month? Should I look for another place to rent that will better suite my preferences while trying to save up some money for a house?

I live in Oregon, housing market is pretty inflated over here, and the area is growing seemingly pretty quickly as I'm located near Portland.

My knowledge on real estate is very limited, I'm just starting to learn about the concept of rental property investing. Any advice is appreciated.

@Dallas Naish  
   so that i'm paying myself and not losing rent money every month

Would you rather lose money by paying a mortgage every month? Mortgage payments are often  more than rent and most of your payment goes to interest.  If you are going to live in a property just a couple of years, buying does not make sense. The transaction costs of buying take a few years of appreciation to recover.

Good luck.

@Dallas Naish Welcome to BP. I wish I would have started at 28! Portland is a tough expensive market, but there are options. First step you can take for free, is contact a mortgage broker or bank and see what you can be approved for. This will help with running numbers later and give you possible goals for savings if you aren't there yet. 

I have a friend who just bought a really nice house in vancouver. He used a VA loan to buy a 4 bedroom and is renting out 3 of the rooms, and that is pretty much covering his mortgage. You could also look into house hacking. Buy a small place to live for yourself that you think you could rent out for a year that would at least cash flow a little, and then do it all over again.

Send me a message if you want more info or suggestions for mortgage brokers that work well with investors

Originally posted by @Dallas Naish :

I'm 28 years old, male. I do not own any property, I'm currently paying rent for a room to live. I have 10k in savings, and 27K built up in an IRA.

I'm looking to get out of my current housing situation, and I'm wondering what my first steps should be, should I look to purchase a home for myself, so that i'm paying myself and not losing rent money every month? Should I look for another place to rent that will better suite my preferences while trying to save up some money for a house?

I live in Oregon, housing market is pretty inflated over here, and the area is growing seemingly pretty quickly as I'm located near Portland.

My knowledge on real estate is very limited, I'm just starting to learn about the concept of rental property investing. Any advice is appreciated.

Hey Dallas,

These are good questions to ask.

As recommended already on this thread, I'd say you should first get pre-approved by a lender. Also ask about getting pre-approved for a multi-family property.

Once you have an idea of what your budget is, speak to a local realtor about your options for properties in the area. If you don't know what properties go for, speak with a realtor before getting pre-approved and let them know you'd like some guidance with the process.

That will surely point you in the right direction.

Best of luck to you on your journey!

Abel

 

Originally posted by @Nels Norquist :

@Dallas Naish Welcome to BP. I wish I would have started at 28! Portland is a tough expensive market, but there are options. First step you can take for free, is contact a mortgage broker or bank and see what you can be approved for. This will help with running numbers later and give you possible goals for savings if you aren't there yet. 

I have a friend who just bought a really nice house in vancouver. He used a VA loan to buy a 4 bedroom and is renting out 3 of the rooms, and that is pretty much covering his mortgage. You could also look into house hacking. Buy a small place to live for yourself that you think you could rent out for a year that would at least cash flow a little, and then do it all over again.

Send me a message if you want more info or suggestions for mortgage brokers that work well with investors

 Thank you all for the suggestions, I do appreciate the advice! I like the house hacking idea, will look into this further with a bank/lender, I do have contact info. for a local mortgage broker, going to check with my local credit union on pre-approval/loan options.

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

We hate spam just as much as you

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here