I recently graduated with a Master's Degree and I will begin work as a Human Capital Consultant in Vienna, VA next week. My life goal is to stop working and invest in real estate full time. After years of researching the topic (BP podcasts, books, online courses, etc), I'm ready to dive in. I want to use the capital earned from my job and an FHA loan to obtain a buy and hold owner-occupant property (live with rent-paying roommates) in one of the Northern VA cities. I can save up quite a bit of funds because I'll be living with my grandmother for a year to help me save money before I buy a house. I would like to be able to close on a property one year from now.
I have a few questions regarding my plan:
1. How much money should I save to buy my own property in Northern VA? (Making a 60k/yr salary, no school loans, and no rent payments for 1 year).
2. Are there any flaws in this plan or is there a better strategy based on the information I've shared?
3. Is this a good first step towards a career in REI?
Any other general thoughts or comments are welcomed. Thanks so much for reading and sharing your thoughts with me!
@Gabrielle E. Congratulations on your graduation and new job.
I wish I was this smart when I was your age. Using FHA loan for a multi-unit property is a great idea.
I live in Vienna. Let me know if you would like to meetup to discuss. Or you can call me with questions. Will be happy to help anyway I can. PM me.
Good luck and Good hunting.
@Upen Patel thanks so much for the response. I would definitely like to connect.
Congrats on being forward thinking! One of the best ways to know how much to save is to study the market and see what's available in your target areas. NoVA is a hot and expensive market. With an FHA loan, you'll need $17,500 for a down payment on a $500k house...that's nearly 20% of your annual income! :)
The market won't be the same a year from now but by studying it now, you'll have a better sense and can then keep tracking it so you won't be surprised by changes. You can look for investor friendly realtors here that may spend time with you or you can do your own research on sites like Redfin. Look for a number of properties that you like and then track them to see how long they take to sell and how much they sell for vs. the listing price. Use this year to continue your REI education as well as your understanding of your markets.
Free eBook from BiggerPockets!
- 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.
Sign up below to download the eBook for FREE today!
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