First Property Do's and Don'ts

[Tanner Stenquist]

Hey everyone!

My name is Tanner and I am 23 and a current full-time college student studying Accounting. I have been listening to bigger pockets podcasts for a little now and I have decided to try and get my first property. I am located in Idaho, and I have found two properties (one is a 2 bedroom/1.5 bath townhome ($135,000) and one is a 2 bedroom/1 bathroom single-family unit ($120,000)).

I am planning on living in it for the next two years with my fiancee/future wife while I finish my Master's in accounting/MBA and she finishes her Bachelors in Nursing. Once we graduate we are planning on moving to the Washington DC area, to start our careers and we would like to keep this property and rent it out.

I am BRAND NEW at this and I was wondering what are some do's and don'ts of the whole process. I am in the middle of reading the ultimate beginners guide and I am actually going to look at the two properties tonight.

Any pointers, tips, etc. would be fantastic.

Thanks!

[Don Spafford]

@Tanner Stenquist As mentioned, consider the HOA. Even if it is low now, it could increase at some point. At the same time, what does the HOA cover? It may be worth it if you never have to replace a roof for example. If they also will mow the grass and remove snow, it would be good to ensure those things get done. The other thing to consider is the bathrooms. 1.5 is better than 1. For growing families, only having one bath means you will probably get more turnover which means more expenses. The SFR would have more privacy than the townhome. There are pros & cons to both.

If you have not considered it yet, maybe try to get a small multi-family instead and house hack it. I know of an excellent duplex in Idaho Falls for sale right now in a great location that you could live in the upstairs and rent the basement unit and cover most of your mortgage. Or if you don't care about the space, you live in the basement with 1 bed 1 bath and rent the larger upstairs unit and possibly live for free. PM me if you want more info or would like to see it, my wife is a Realtor and we just recently showed this property to someone else.

But a house hack would be a better option if you can do it, then when you move out it will cash flow very well for you.