Hello! I am new to Bigger Pockets and real estate investing!

Hello! I am new to Bigger Pockets and real estate investing!

Madison, WI · Member since 2015 · 3 posts · 2 votes

Hi there.

I am new to bigger pockets and real estate investing. I am looking to start investing in a few different ways. 

First, I am looking to purchase a property and live in it. At the very least, I am looking to stop throwing my rent money away and try turning it into equity (down the road). I am also interested figuring out how to get tenants/roommates to pay for the mortgage on the property so that I negate my rent  expenditures completely. 

Second, I am looking to slowly over the course of at least two years (at the very least) rehab the place so that eventually when I do sell it, I will get the most out of the property that I can.

Some of my challenges/opportunities are as such:

I am willing to move anywhere for a good property investment. Some of the areas I am most interested in are: New Orleans, Nashville, Albuquerque, Santa Fe, Austin, Sacramento, Houston, Savannah, San Antonio and Atlanta. I have chosen these areas because these are growing cities, with lots of young people moving in and most of them have plenty of access to nature and hiking and biking opportunities.

I have a fair credit score but my debt to income ratio is very poor. I am trained as a lawyer and have thousands of dollars worth of student debt. I work in the public sector generally and don't make enough to counteract the federal debt to income percentage.

I have not been able to save any money for a down payment due to trying to pay down my student loan.

I have recently inherited a small amount of money enough for a down payment on a property (hopefully). 

I have read a few books, like 'How to Invest with No Money Down', and 'Property Investing for Dummies', but I am curious if anyone has any general advice in the current property market.

Mostly, I just want to meet some people who are doing the same thing and/or have done the same thing so that as I move forward in this process, I will have a support/resource community. 

Thanks!

Renee

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Investor · Phoenix, AZ · Member since 2015 · 191 posts · 152 votes
11y

From my experience I've never seen anyone flip a property using hard money financing from an actual company (private lenders don't count) and be out of pocket less than 40,000 over the course of the entire project. I'm in Houston so I can only speak for the Houston market.

As far as your credit and debt to income, credit will probably matter more. I think most companies have programs for people with decent credit and cash reserves but terrible dti.

If you have less than that, I would either consider saving more money, finding a partner who will go half or you could attempt to wholesale and save money until you have enough to flip. But that's a whole different topic. 

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  • Solo 401k Expert · Anaheim Hills, CA · Member since 2012 · 18k+ posts · 6k+ votes
    11y

    Welcome to BP @Renee Gregory

    Wishing you the best!

  • Milwaukee, WI · Member since 2015 · 48 posts · 12 votes
    11y
    Originally posted by @Renee Gregory:

    Hi there.

    I am new to bigger pockets and real estate investing. I am looking to start investing in a few different ways. 

    First, I am looking to purchase a property and live in it. At the very least, I am looking to stop throwing my rent money away and try turning it into equity (down the road). I am also interested figuring out how to get tenants/roommates to pay for the mortgage on the property so that I negate my rent  expenditures completely. 

    Second, I am looking to slowly over the course of at least two years (at the very least) rehab the place so that eventually when I do sell it, I will get the most out of the property that I can.

    Some of my challenges/opportunities are as such:

    I am willing to move anywhere for a good property investment. Some of the areas I am most interested in are: New Orleans, Nashville, Albuquerque, Santa Fe, Austin, Sacramento, Houston, Savannah, San Antonio and Atlanta. I have chosen these areas because these are growing cities, with lots of young people moving in and most of them have plenty of access to nature and hiking and biking opportunities.

    I have a fair credit score but my debt to income ratio is very poor. I am trained as a lawyer and have thousands of dollars worth of student debt. I work in the public sector generally and don't make enough to counteract the federal debt to income percentage.

    I have not been able to save any money for a down payment due to trying to pay down my student loan.

    I have recently inherited a small amount of money enough for a down payment on a property (hopefully). 

    I have read a few books, like 'How to Invest with No Money Down', and 'Property Investing for Dummies', but I am curious if anyone has any general advice in the current property market.

    Mostly, I just want to meet some people who are doing the same thing and/or have done the same thing so that as I move forward in this process, I will have a support/resource community. 

    Thanks!

    Renee

     Welcome to the BP community 

  • BiggerPockets Support · Manila, Philippines · Member since 2015 · 1k+ posts · 149 votes
    11y

    @Renee Gregory

    Welcome to the Bigger Pockets community!

    Glad to have you with us.

    BiggerPockets
  • Investor · Phoenix, AZ · Member since 2015 · 191 posts · 152 votes
    11y

    From my experience I've never seen anyone flip a property using hard money financing from an actual company (private lenders don't count) and be out of pocket less than 40,000 over the course of the entire project. I'm in Houston so I can only speak for the Houston market.

    As far as your credit and debt to income, credit will probably matter more. I think most companies have programs for people with decent credit and cash reserves but terrible dti.

    If you have less than that, I would either consider saving more money, finding a partner who will go half or you could attempt to wholesale and save money until you have enough to flip. But that's a whole different topic. 

  • Investor in the making · Orlando, FL · Member since 2014 · 201 posts · 49 votes
    11y

    Welcome to Bigger Pockets. Ask away! There is lots of wisdom, and a great group of people on here.

  • Lender · Mineral Wells, TX · Member since 2015 · 4 posts · 1 vote
    11y

    Renee,

    You have some admirable goals.  I think the first thing you are going to have to do is to narrow down your search.  Check out the markets and determine what is most important.  I don't live in any of those markets but I am close to the Austin and San Antonio markets.  Although there are many hurdles for you to overcome one is inventory.  Desirable markets is where you want to own, but it also makes finding the right property, with the right type of financing, more difficult.  Also, you should consider the cost of the type property you are looking for in these markets.  San Diego would, I think, be a great place to find people willing to be roommates, but the cost of a home may be more than double what some of the other markets on your list are.  Make a decision on what market you are going to pursue then determine what financing you will be able to utilize.  Then determine what properties in your market will allow you to utilize your financing.  Take each hurdle as it comes and then find the solution and go to the next one.  When determining what you should charge for rent don't forget to include your mort. payment, insurance, taxes, property management expenses, and maintenance costs.  It won't be easy in your current situation, but it will be well worth it when you find the solutions.

  • Peter MckernanBusiness Member
    Residential Real Estate Agent · Irvine, CA · Member since 2013 · 2k+ posts · 1k+ votes
    11y

    Welcome @Renee Gregory

    This website is great and I hope you find all that you are looking for here. I do not know your market; however, the current market in my area is very hot! The properties are going to quickly and for an extremely high price. It is tough to find a deal and when a deal pops up there are many people (investors) going after it. 

    I would speak to an agent in your area that has some investing experience as well. This would make you a little more comfortable with the investing and also the price point you should be at to gain a profit in buy and hold, or rehabbing the property.

    Good Luck,

    Peter 

    The McKernan Group4.958 Reviews
  • Rental Property Investor · Los Angeles, CA · Member since 2010 · 804 posts · 230 votes
    11y

    Welcome to BP.  You have come to the right place to get help with your journey to become a successful real estate investor.  BP can be a tool to help you build wealth in real estate. All the cities except Sacramento has a lower price entry point.  All the other cities will give you a quicker start.  Sacramento will give you a better chance at appreciation, while all the rest are considered cash flow markets.  Good luck on your successful real estate investing career.

  • Professional · Carlsbad, CA · Member since 2012 · 12k+ posts · 1k+ votes
    11y

    @Renee Gregory

    BP is full of useful resources such as forums and blogs. Welcome to the Bigger Pockets community-be sure to check out all the awesome BP blogs under “Learn.”

  • Rental Property Investor · Roscoe, IL · Member since 2015 · 44 posts · 5 votes
    11y

    Hello and welcome to BP.   I wish you all the best! 

  • Nashville, TN · Member since 2014 · 11 posts · 3 votes
    11y

    Nashville is definitely growing, we're always looking for new people! 

    I have a friend moving back who might be a good short term tenant should you end up buying here. 

    PM me with any questions about the area.

    Nick

  • Wholesaler · Lehigh Acres, FL · Member since 2014 · 46 posts · 21 votes
    11y

    Welcome to Bigger Pockets! Those all sound like great places to invest, I would suggest that you move/invest somewhere that you would like to live most. There are deals everywhere. 

  • Wholesaler · Austin, TX · Member since 2014 · 7 posts · 1 vote
    11y

    Let me know if you're in Austin! We can absolutely find you something here!

  • Investor · San Antonio, TX · Member since 2015 · 89 posts · 17 votes
    11y

    One of your goals on your bio page is to have a property and have it pay for itself via room mates and tenants. I would suggest buying a duplex, triplex or 4 plex and live in one of the units and rent out the others.

    If you buy it as your homestead your rate will be lower and the down payment required will be less (I would recommend putting enough down to avoid the PMI payments if possible). This would get your feet wet and your tenants would be building equity for you. It would be hard to do that in another city so I maybe look at properties in your home town first. I think that will help you have an understanding of what is expected and what is to come when you start investing out of state.

  • Residential Real Estate Broker · Los Lunas, NM · Member since 2012 · 32 posts · 5 votes
    11y

    Renee,

    Welcome to Bigger Pockets! I am a Real Estate Associate Broker based in Albuquerque.

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