Questions from a Newbie

[Julia Rao]

Hi there! I'm brand new to BP and have just started ready books about REI. I'm 25, newly married, living in Durham, NC where I work as a chemical engineer.

I’m going through a quarter life crisis (lol) and considering a career change, as I’m pretty miserable in my current field.  What I’m looking to do would be a significant pay cut, so I’m investigating other options to help fill the financial void I’d be leaving behind. 

REI has definitely piqued my (and my husband's) interest. Before I make any moves I definitely have more research to do, but I just wanted to put a question out there.

My husband and I currently live in an apartment, but we want to buy our own home soon.  I am just waiting to figure out where I’ll be working and what my new salary will be. We have ~$50K saved up towards a down payment. 

We would consider house-hacking, but not totally in love with the idea of having roommates. We also would consider Airbnb-ing a room. But is it even worth it for me to consider buying REI property any time soon, or just focus on our own house? Seems like I should cool my jets with this venture and wait until we have our own house for a few years?

Any advice/opinions welcomed! 

[Brenden Mitchum]

Hi @Julia Rao! First off, welcome to the BP community! I am also fairly new to investing and in a similar boat, having recently realized that I need a career change quick! 

To answer your question, I would highly recommend house-hacking. You can do so without having roommates by buying a multifamily property. If you are uncertain of your future income, this can relieve the huge pressure of a mortgage, while also building equity in your new home. Now if you feel you must live in a single family, you could run an airbnb but this is a very active investment, requiring much of your time. So another option would be to live in it for a year then move out and rent the unit. You now have an investment and you can do this again with another single family. 

Most seasoned investors here will probably advise against this and tell you to start investing as soon as possible. My advice is to do what feels right for you. Financially speak, investing *in good deals* ASAP is the smartest move, but first make sure you are ready for this. Just don't keep waiting and pushing it off or you'll never get started. Read some books, listen to some podcasts, and take action!

Honestly, even continuing to rent and use your capital to invest would be a way better call than buying a home and waiting three years to invest.