New to Real Estate · Jacksonville, FL · Member since 2017 · 12 posts · 3 votes
I am 19 years old with zero experience in real estate but I gained some knowledge from these forms , Anyways I have a single mother and we are selling our house in upstate newyork and Moving to Jacksonville FL , and We will have around 100k to 130k . I know i want to invest in real estate but im scared of making mistakes, I wanted to buy a single family home from a local turnkey called Morris invest because I thought its safer to buy with him because he rehabes the property , but I’ve heard bad things about him . My second option is to move to Indianapolis and invest in multi families by myself using a realtor, but im worried of making some fatal mistakes and loosing some money as those are the only thing we have left . Please help me with making the best decision and if choose the second option, how can I avoid making fatal mistakes? And would i be able to Qualify for a loan on a rental if I only make minimum wage but i have the down payment? My mother doesn’t know how to invest and shes depending on me, I really need serious help
Investor · West Orange, NJ · Member since 2017 · 85 posts · 37 votes
8y
Go with house hacking to start. You will be able to get FHA financing, will be close to your tenants, and will also start to get your feet wet in REI!
Also, educate yourself! Read the Ultimate Beginners Guide here on BP, and there’s a lot of blog and forum posts on house hacking! Good luck!
Investor · West Orange, NJ · Member since 2017 · 85 posts · 37 votes
8y
Go with house hacking to start. You will be able to get FHA financing, will be close to your tenants, and will also start to get your feet wet in REI!
Also, educate yourself! Read the Ultimate Beginners Guide here on BP, and there’s a lot of blog and forum posts on house hacking! Good luck!
Real Estate Broker · 3412 S. Harlem Avenue Riverside, IL 60546 · Member since 2015 · 6k+ posts · 5k+ votes
8y
@Eli K. you are in a good position to get started, and you are smart to be wary. $100,000 is a nice chunk to start investing, but I would recommend that you try to deploy as little of that as possible on your first deal. Why not use the 5% down conventional loan to take down a 3 or 4 unit house hack. I would focus on something like that up front so you make sure not to ruin Mom's nest egg.
If you go the SFR route, please do not go through a turn key provide. This is especially true if you are going to live in the area. Just find a regular investor friendly realtor and start looking at properties. Give it a month or two and you will know the market and will be able to distinguish which deals make sense. I work with investors all the time in the Berwyn market in the Chicago suburbs. The first deal is always tough because there is an education barrier, but just take your time and don't feel pressure to begin investing until you know what you are doing.
You need to educate yourself before you do anything else. 6 months to a year of studying finances, money management and real estate investing is normally required when starting from zero knowledge.
Understand that investing involves risk. You risk losing all your money with a bad decision. At your age there is no way you are ready to invest all your mothers money without assistance. Find a financial advisor recommended by reliable indivulaes and get some real advice.
My advice would be for your mother to simply buy another home to live in and you spend some time getting educated before you consider risking any of her money.
I am 19 years old with zero experience in real estate but I gained some knowledge from these forms , Anyways I have a single mother and we are selling our house in upstate newyork and Moving to Jacksonville FL , and We will have around 100k to 130k . I know i want to invest in real estate but im scared of making mistakes, I wanted to buy a single family home from a local turnkey called Morris invest because I thought its safer to buy with him because he rehabes the property , but I’ve heard bad things about him . My second option is to move to Indianapolis and invest in multi families by myself using a realtor, but im worried of making some fatal mistakes and loosing some money as those are the only thing we have left . Please help me with making the best decision and if choose the second option, how can I avoid making fatal mistakes? And would i be able to Qualify for a loan on a rental if I only make minimum wage but i have the down payment? My mother doesn’t know how to invest and shes depending on me, I really need serious help
House hacking a multi unit is a good play. You'd only need 3.5% down.
From there I'd use the rest on a down payment for a stable B-Class asset. What you absolutely don't want to do is blow your entire war chest buying something cash. Could go good but you'll be wiped out if it goes bad.
Investor · Hoffman Estates, IL · Member since 2014 · 434 posts · 185 votes
8y
Find a local mentor to help.
You'll make mistakes no matter what. So I agree, it's probably best not to put too much of your capital into your first deal. Make your mistakes, learn from it, then buy another one.
New to Real Estate · Jacksonville, FL · Member since 2017 · 12 posts · 3 votes
8y
Do you guys think I can Qualify for an FHA loan if my income is very low ? I am a student and I work for minimum wage and I don't have a 2 year Of income proof.
Plano, TX · Member since 2018 · 48 posts · 28 votes
8y
What are you studying? If you are serious about getting into the real estate business I would recommend finding a great realtor to mentor you and getting your license. It may not be cool to live with your mom, but financially it should be a great move for both of you (assuming ya'll get along).
Before you spend anything I would educate yourself on personal finance. Go through the Dave Ramsey books, read Rich Dad Poor Dad, if you don't know why car dealers are hyper-focused on monthly payments you won't be able to run the numbers on a property.
Real Estate Agent · Jacksonville, FL · Member since 2016 · 406 posts · 163 votes
8y
Hi @Eli K., I look forward to welcoming you to Jacksonville, FL when you arrive.
In your position it may make a lot of sense to try to house-hack. With $100-130K you will have plenty of money to be able to go after a small multifamily in Jacksonville to live in one of the units. You'll typically be applying for owner-occupant financing via FHA. You probably won't qualify for a loan if you don't have history so you may need to wait a bit or have your mom co-sign or purchase the home.
If you can utilize financing you have enough to get started. If you have to pay cash I might hold out a bit more until you can get financing.
Feel free to connect if you'd like to learn more about the Jacksonville market.