Best type of Investment for a starter?

Question

Hello, I am a complete beginner in the Real Estate industry. I have been studying RE really well over the past year. I am 17 years old now and by the time I am 18 early 19 wanna own a investment property. I am just really curious what others or how others would approach to starting a investment portfolio? For example Multi family (4-plex,etc), BRRRR strategy, Single family's. Which investment should I really begin with.

Yes, it can possibly vary with the financial situation. After I graduate and get accepted to university,(UofA or UofC) I wanna apply and wanna work at a local bank. Get work portfolio, build credit etc. Maybe in my early 19s I wanna make my first purchase that can cash flow. If my approval is not enough I wanna Partner and co sign with close by person.

Thank you for listening to my plan. If anybody has great information on what investment I should go with. I would love to hear it thank you so much!

Forrest Williams · Answer

A smaller multi unit is your best bet. Something you can fix up a bit, as well as rent out to pay the mortgage. Push comes to shove, you could get a single family home to fix up and fill it full of roommates. If you are planning on going to college, lots of schools have a rule where you have to live on campus for your first year. You can use that as a opportunity to save up money for your down payment and make some friends you can rent your future place to.

Nathan Gesner · Answer

As an 18-year-old, first-time home buyer, I doubt you'll find a lender willing to give you special terms. It will be hard enough getting a traditional loan at your age.

Nathan Gesner · Answer

Your best option is typically a four-plex. You can live in one of the units, rent the other three out. It's commonly referred to as "house hacking" and there's a good book on it in the BiggerPockets bookstore by Craig Curelop. I also recommend "Set For Life" by Scott Trench, which covers the basics of sound financial discipline as well as house hacking.

Nathan Gesner · Answer

You can qualify for an FHA loan with just 3-5% down, but it requires you to occupy the property as the owner. If you don't occupy the property then you'll lose the opportunity to finance with such a small downpayment.

Ata Ziv · Answer

@Nathan G.

Right the FHA loan. You think I can still get 5 to 10% down if I had good relationships with a local bank?

Ata Ziv · Answer

@Nathan G.

Thank you! I appreciate the advice and recommendation on which to go with. I will be living with parents so I won't really house hack is my best investment still a 4 plex if I don't house hack? And eventually grow to even bigger amounts of units?

Thank you Nathan!

Best type of Investment for a starter?

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