How much is too much to get your feet wet

How much is too much to get your feet wet

Member since 2020 · 1 post · 0 votes

My name is Zachary Hora and I am 22 years old. I've been weighing out options after studying real estate investing for the past year or so and was curious if I could get some opinions. I own no properties, pay $ 550 a month in rent (long story), and live in near Denver Colorado which as you know is a pretty expensive market. I've really fallen in love with the idea of getting a duplex and house hacking it. My trouble is that a solid duplex in these areas seems to be from $4-$500,000 after looking on the MLS and talking to a couple of realtors over the span of a couple months. Does that seem like too much for a first property to you guys? I would be doing an FHA loan with little down, I make 70,000 a year from W2 job, and have about $30,000 cash. For this reason I have also been researching markets and analyzing out of state rentals at the same time. After studying David Greene's OOS book, podcasts, and thousands of posts on here I'm but still not sure if I want out of state to be my first deal. Contrarily I also figure I'm paying so little in rent right now that an OOS might not be a bad idea. Sorry if that was dragged on and sounded stupid but if anyone has some second opinions or insight it would be greatly appreciated.

0Reply
21 views

5 Replies

Jump to latestLatest
  • Rental Property Investor · Kansas City, KS · Member since 2015 · 45 posts · 29 votes
    6y

    Sounds like a great idea to me - would recommend renting out rooms on your half of the duplex. Appreciation is pretty awesome if you can find it, and even more powerful with FHA loan leverage.

  • Investor · Marin County California · Member since 2018 · 1k+ posts · 2k+ votes
    6y

    I would encourage you to pursue the house hack.  Get to know the ropes of buying, financing and landlording first hand before taking your game elsewhere.  

  • Rental Property Investor · Erie, PA · Member since 2015 · 1k+ posts · 2k+ votes
    6y

    Investing out of state is how I got started. I bought a 4-unit in PA in the town I grew up in (while living in Los Angeles).

    I have family there who can visit the property if need be. If you've got friends or family living in a market where you like the returns I would consider investing there as they can help you from time to time if needed. 

  • Realtor · Denver, CO · Member since 2013 · 2k+ posts · 1k+ votes
    6y

    If you can stand to live with roommates, then I'd scrap the idea of a duplex. Look at 4-5 bedroom homes. They are easier to find and start with. 

  • Twana RasoulBusiness Member
    Real Estate Agent · San Diego, CA · Member since 2017 · 1k+ posts · 1k+ votes
    6y

    Start with house hacking, I would not recommend going OOS to start...it adds another layer of complexity.  Start local with house hack.

Join the conversationCreate a free account to reply, vote on answers and follow this thread.