First Investment! Need Criticism and/or Support!
Hi All,
I graduated university in 2017 and have been working in a big tech company for two and a half years. Real estate is something I have been learning by myself for the past year. I am trying to avoid paralysis by analysis, and want to pull the trigger on my first investment!
I am from Michigan, but I am working in the Boston area and am familiar with the Greater Boston market because of the real estate meetups I have attended. I am thinking about pulling my 401k and all my savings to purchase my first property in Greater Boston.
My plan is to take an FHA loan so I can leverage the 3.5% down. Also, utilize the MassSave program for any quick renovation upgrades (0% interest for 7 year loan on energy efficient household items). I am worried I don't have enough saved as an emergency fund, and would need to go to hard money lenders in the case of emergency on the home. I would be technically living in the home, but I would rent out every room anyways because I stay at my girlfriend's most nights. This is to fulfill the "intent to live" for one year condition for the FHA loan.
The reason I am posting this is because I want to find someone who can criticize//support me in these ambitions. I am 24 years old and I am willing to take the risk now while I am young. If there is someone in a similar situation with me, I would like to connect too!
Here is the loaded question, is this all a good idea?
Thanks for reading!
Most Popular Reply
Life is about making decisions with incomplete data. The goal is to make decisions that give you the greatest percentage chance of success. With that in mind, I would not pull from your 401k. The stock market has 100+ years of proof that it can turn a profit. You have 0 years. Continue to save in your 401k, live under your means and save cash. Also, focus on growing your job income. Nothing makes real estate investing easier than a massive salary and lots of excess cash.