At what age did you guys get your own house?

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At what age did you guys get your own house?

Sean Gallagher
Real Estate Investor · Millsboro, DE · Member since 2008 · 120 posts · 7 votes

I'm 19 years old and my parents have been getting on my case lately, Pay us this a week, pay us that, step up to the plate, you use our washer , our dryer, and the oven, you eat our food and so on. I think it's time to move out and why not do so with the 2 other closest best friends i have? We always stick together and are thinking about getting a nice house and splitting the cost.

Thoughts?

My one best friend is strongly into rei as well so we were thinking about looking for a house that needed some attention.. which we could restore as we all stayed there.. Almost like a long flip, i know its not a fast flip so some money will be lost, but we will probably only be in there for 2-3 years till we are all done college. Who knows.. maybe we will flip the house fast and want to earn profit quickly and put it on the market.. god knows. No I haven't found a house yet, we are trying to set our budget first. We make a total of 70k a year if that helps. I think the usual is 3 times what your yearly income is?

Should we look for a house on land that we can own or lean more toward land that we have to pay lot rent? Who knows maybe evenutally we'll be living in an enormous house after the 10 flips as we work our way up? ya never know. Any incite would help greatly as I am in a tough situation. I pay 300$ a month for an 02 ss camaro and 2k a year for full coverage insurance. That's all of my bills right now. Besides gas, food , and such.

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  • Sean Gallagher
    OP
    Real Estate Investor · Millsboro, DE · Member since 2008 · 120 posts · 7 votes
    19y

    I know there can be 2 people on a mortgage .. but what about 3?

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  • Frank Adams
    Loveland, CO · Member since 2008 · 1k+ posts · 123 votes
    19y

    Yes there can be three, or 4 or 5 or however many. That's not the big question here. I have bought and sold close to 100 houses and I would never own property with anyone I'm not related to, period.

    Hang out on this and other sites for awhile and you'll read plenty of tales of "partnerships" that came to woe. Unless you have a written (by an attorney) agreement that covers; % of ownership, ongoing responsibilities, rights and responsibiltiies upon sale, death or disability of any one owner, remedies available in case of breach.

    Are you going to be on the deed? On the note? What happens if one guy gets drunk and runs into another car and kills the breadwinner? Are you covered? How much do you or any of your buddies know about repairs? If one guy is "strongly into REI" does he get a cheaper buy in, or bigger share because of his expertise.

    In your shoes, I'd ask Mom how much she wants a week, and do more than my share of chores, wash her car etc. You don't know how good you've got it.

    all cash

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  • Pete Hagar
    Contractor · dayton, OH · Member since 2008 · 2 posts · 0 votes
    19y

    I know you think your folks are being unreasonable but they are not, they sound very reasonable and normal. Like was stated previously ask what they want. Step up and ride that easy wave, you have the rest of your life to live on your own. While living with them on the cheap SAVE and make your first purchase home on your own. We've all been there including your parents.

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  • Sean Gallagher
    OP
    Real Estate Investor · Millsboro, DE · Member since 2008 · 120 posts · 7 votes
    19y

    just haven't been getting along lately... and on their free time its usually computer playing games or drinking which bothers me.

    I do agree.. that I have it good right now and all, its just aggravating. I can picture a happy life living in a house with no one up my ***. its great. I think its time to do something tho.. atleast get the money im making work for me somehow besides earning interest in my money market account. I feel like im not doing enough.. Feels like life is all about money when it comes down to it.. and when ya have plenty.. life comes down to other things. :badwords:

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  • Colin Turnbull
    winnipeg · Member since 2008 · 90 posts · 0 votes
    19y

    my suggestion would be to get out of the house by getting another part time joband go to the library and study, dont forget to set aside some fun time. Take some of the extra money and pay something for room and board...shows the parents you value what they give you. any extra money pay off the car loan quicker then start setting aside money for rei then go buy a duplex and rent out the other half.

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  • Tom NA
    Real Estate Investor · Mountain View, CA · Member since 2008 · 234 posts · 32 votes
    19y

    Nobody really answered your initial question about what age people got their first house. I didn't get mine until age 31 but then again I spent a couple years at grad school in my 20's and I also live in an area where the average house costs in excess of $600k so ownership is tough for a young, single earner (thank God I got married eventually!).

    If you really feel that you need to get out of the house, I would recommend renting with some roommates for awhile - like most 19-year olds do. You may quickly find that the cost of owning your own home is much higher than you think and renting is a much more manageable option until you get yourself a little more established. Also, it sounds like you're grossing maybe $25k/year (~2k/month) and spending almost $500/month on your car alone (including insurance) which tells me that you may want to get your financial house in order or at least determine priorities a bit first before you look at taking on a mortgage. You should probably thank your parents for their support because you may quickly find out that once you're on your own, you can't afford both a house (or maybe hardly an apartment) and the hot rod car. Remember, the list of bills that you *don't* have to pay right now goes on and on - electric, gas, phone, cable, water, garbage/sewer, house/renter's insurance, property taxes, maintenance, etc.

    So I guess you should follow your dream but make sure you're going in with your eyes wide open and that you have a reasonable plan. In fact, I can't even tell if you merely are trying to get out of the house and this is something that will facilitate that or if you are looking to get into RE full-time.

    And to your comment that "life is all about money" - that's probably the most common misperception there is. We all believe that money is the avenue to happiness when in reality, I believe it plays a very minor role. Those with money have their own set of issues and challenges, just like the rest of us - most of the people on this board that focus on the desire to make a lot of money in their posts are the newer members. The established investors, whom I assume have done quite well financially, never talk about how much money they have made or how that is their main goal in what they do. I could be wrong but I think RE investing is much more than merely a way to get rich for most of them.

    Good luck and don't forget to have fun with whatever you do!

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  • Account Closed
    Real Estate Investor · London · Member since 2008 · 3k+ posts · 74 votes
    19y

    To answer the question in your subject line.

    About 1 year after college so 22 or 23 as I can not remember exactly what month I purchased the home.

    I was living in a shared home with roommates prior. I do suggest you get used to living on your own or with roommates before focusing on buying a home. Or buy a home that is a rental while you deal with your personal living situation.

    I was shocked when I bought a house at all the small expenses. Tools, gardening stuff, and other things related to upkeep. I think I spent the first 5-6 weekends at the hardware stores.

    John Corey

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  • Sean Gallagher
    OP
    Real Estate Investor · Millsboro, DE · Member since 2008 · 120 posts · 7 votes
    19y

    thanks for the replies guys, I gross about 30k. I think i'll just give my parents money and hold back as long as I can until college is done. I'll just keep saving my money. Hopefully by sometime next year I have a solid 25-30k put away in the bank. That gives me a year to search around for an investment in re untill college is done. I may be able to do a flip with a friend while still living at home. Its just tough because all 3 of us are in somewhat of the same situation. I think what bothers me is saving all this hard earned money and i feel like im not getting anywhere. I work 54 hours a week so another job is guna be hectic, especially when school picks back up this coming semester. What exactly is a duplex? Im building credit right now to help with the future if I see something good. Like a rehab.

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  • Colin Turnbull
    winnipeg · Member since 2008 · 90 posts · 0 votes
    19y
    Originally posted by "Crazy3rdgen":
    thanks for the replies guys, I gross about 30k. I think i'll just give my parents money and hold back as long as I can until college is done. I'll just keep saving my money. Hopefully by sometime next year I have a solid 25-30k put away in the bank. That gives me a year to search around for an investment in re untill college is done. I may be able to do a flip with a friend while still living at home. Its just tough because all 3 of us are in somewhat of the same situation. I think what bothers me is saving all this hard earned money and i feel like im not getting anywhere. I work 54 hours a week so another job is guna be hectic, especially when school picks back up this coming semester. What exactly is a duplex? Im building credit right now to help with the future if I see something good. Like a rehab.
    a duplex in canada is basically either two attached houses or one house split into two, it maybe called something different in the u.s. good luck in the future and keep us posted.
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  • Tom NA
    Real Estate Investor · Mountain View, CA · Member since 2008 · 234 posts · 32 votes
    19y

    I have to admit, in spite of what I may have said in my earlier post, if you are in a position to have $25-30k in the bank at age 20, you are way ahead of the game financially and should be very proud to have gotten where you are at such a young age. I think this is a strong indicator that you have the discipline and responsibility to be successful in RE or whatever else you pursue as long as you take the time to learn before jumping in too fast.

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  • Jon Holdman
    Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
    19y

    I started working in Houston in 1982 after graduating from college. At that time, the economy was booming. Interest rates on houses were 16-18% and most mortgages involved significant negative amortization. If you've not heard of that it means your principle balance goes up each month, not down. By 1985 people were mailing their keys to the mortgage company and moving out. We finally bought a house in 1987, with owner financing.

    Before then we had rented apartments and then a house. Renting a house was actually good practice for owning, since you have to deal with a lot of things in a house you don't have to with an apartment. My son's recently moved out of an apartment into a rental house and is learning the same lesson.

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  • Ryan Webber
    Wholesaler · Amarillo, TX · Member since 2008 · 1k+ posts · 659 votes
    19y

    I bought my first house at age 23. It was also my first investment property. It was a duplex, and I lived in one side for about six months. Then I actually bought my first house for non-investment purposes.

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  • Sean Gallagher
    OP
    Real Estate Investor · Millsboro, DE · Member since 2008 · 120 posts · 7 votes
    19y

    Charles, you plan to purchase your 100th property before age 27? wow that's impressive, That's a lot of property, were those properties you bought then sold? What kind of work in rei is it that you do? Also thanks for the good points and comments. Im staying put till im atleast out of college. (2-3 more years) putting away as much money as I can.

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  • Account Closed
    Real Estate Investor · London · Member since 2008 · 3k+ posts · 74 votes
    19y

    Charles,

    You rock! Really.

    It is very impressive that you started so young and have kept with the program.

    :rock: :clap: :rock:

    If you do not mind a post to the getting started forum would be welcome. A 'this is my story' would be something many new investors would love to read.

    John Corey

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  • Ryan Webber
    Wholesaler · Amarillo, TX · Member since 2008 · 1k+ posts · 659 votes
    19y

    Charles, 100 properties in 3 years? Is that it? :D

    You've already done 1. That's only 99 more to go. After about 4 or 5 they'll get a whole lot easier. Its crazy. Before you know it, you forget if you bought one today or not.

    I think 100 before 27 is completely doable for you if you will continue to apply yourself. Heck I did it. I started when I was 23 (actually closed on my first when I was 24), and I had absolutely NO idea what I was doing for the first couple years.

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  • Account Closed
    Real Estate Investor · London · Member since 2008 · 3k+ posts · 74 votes
    19y
    Originally posted by "Ryan Webber":

    I think 100 before 27 is completely doable for you if you will continue to apply yourself. Heck I did it. I started when I was 23 (actually closed on my first when I was 24), and I had absolutely NO idea what I was doing for the first couple years.

    This is not a dig at Ryan. More an observation of the investment field.

    With RE people who lack direction, made bad choices in their career or otherwise did not figure out their life's goal in high school can win and win big.

    Think about it. How many careers can you start part time, requires no particular field of study before you start and at the same time the profits can be greater than many full time jobs?

    What does this mean?

    1. You can accomplish pretty much what ever you want. There is no real limit.

    2. The barrier to entry is low. Everyone can be a RE investor. Hence there are a lot of wannabes. They somewhat make it hard for those who are skilled and operating as there is always a new guy making offers that make little sense.

    3. The marketplace is very large so there is room for a lot of players. If you focus, learn and gain experience from doing you can rise about the noise.

    4. For what ever reason RE investors are generally very willing to share information and tell you what has worked for them. There is little concern about competition.

    John Corey

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  • Ryan Webber
    Wholesaler · Amarillo, TX · Member since 2008 · 1k+ posts · 659 votes
    19y

    No dig taken, John. That's exactly why I choose real estate.

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  • Don Sheppard
    Real Estate Investor · Fairfield, CA · Member since 2008 · 48 posts · 4 votes
    19y

    I hadn't purchased my first home until the age of 36, still live in it now at 45. Thankfully I have a good amount of equity in it and using some of that equity in a HELOC to allow me a means of investing.

    It's great to see someone younger on the right track with positive goals. Me, I mainly managed to stay alive and at least learned the remodel trade in my younger days. Didn't really get "responsible" though until my early 30's.

    Keep up the great work Charles.

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  • Sean Gallagher
    OP
    Real Estate Investor · Millsboro, DE · Member since 2008 · 120 posts · 7 votes
    19y

    I think im just going to keep saving untill college is over, use the money I have saved toward what my first deal would be and see how it goes. I'd like to try and do one sooner but time is one thing that I rarely have. Specially when i work 48 hours a week, and have school 10-15 hours in the same week. I dunno how you guys with full time jobs get to do this on the side, I have soo much other things im needing to do .. and who wants to get their self in a situation with no time and a lot on the line. I guess i have to wait or possibly a deal that I could sub out? I gotta keep my eyes pealed.

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  • Connie Brzowski
    Real Estate Investor · Mont Belvieu, TX · Member since 2008 · 85 posts · 35 votes
    19y

    DH and I bought our first home at age 22-- then the market crashed in our area and it was worth half what we owed on the mortgage :crying: It took years for things to turn around.

    But... (there's always a but, isn't there?) that downturn turned lots of people in our area into millionaires-- they had some cash, bought properties for next to nothing and rented them out until prices recovered and went onward and upward.

    Looking back, we made a mistake buying at the top of the market instead of the bottom. If we'd rented for 5 more years, we could've bought a good dozen distressed properties during the time we were fighting an upside down mortgage.

    Anyway, hind sight being 20/20 and all that, I'd recommend renting awhile-- perhaps with your friends to see how you work together and handle dividing up bills, chores, etc--- then learn everything you can about real estate investing and your local market. If things take another down turn, there'll be many opportunities for the prepared :D

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  • N/A N/A
    Member since 2008 · 16 posts · 1 vote
    19y

    I am an old bastard at 31 thrilled to be looking for my first house aka investment. :groovy:

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  • Jennifer Karlen
    Residential Real Estate Agent · KY · Member since 2008 · 44 posts · 0 votes
    19y

    I purchased my first home when I was 26. Course, it was a golf course community, and I put $100,000 down on it.

    If I had to do over again, I would have purchased much earlier - and bought a Duplex. Live in 1 side, rent the other out.

    If I had done that when I was 19 or 20, I would be a lot further along.

    My 2 cents.

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