Merchant Mariner looking to start investing in TEXAS.

1 Reply

Good Morning Everyone,

A little background on myself. My name is Ryan, I am 24 years old and looking to start investing in real estate. I graduated from Massachusetts Maritime Academy in 2016 with a Bachelors Degree in Marine Transportation and a 3rd mates unlimited tonnage USCG license. I am currently employed with one of the largest shipping companies in the US. I was not the straight "A" student in school but I made the right connections and have landed a very good job where I make 6 figures at a young age. With my job I work on ships as an officer so I am out to sea about 8 months out of the year.

With that being said I am trying to invest my money in real estate. I have spent the last year reading as many books as I could, talking to as many successful investors as I could, studying different markets and trying to understand trends as best I could, as well as traveling around to different areas and looking at properties. After the last year I have narrowed my search down to the state of Texas. I plan to buy a vacation rental. I have been juggling the numbers and I believe there is some money to be made in areas such as Galveston. 

Now I am open to any and all advice but my main questions are as followed.

1. How should I go about financing a vacation rental? I do not own a home currently. Can I get a conventional loan, rent the property as a vacation rental, and use it as my main address? Or do I have to finance it as an investment property? I am unsure if I will be able to qualify for an investment loan. I have excellent credit that I have been building since I was 18 years old. But still that is not a lot of time to build credit history, I will have around 40K cash to put down with enough in reserve to survive for 10 months should I lose my job or something crazy happened.

2. I would like to be able to spend some time at this home. By that I mean maybe one month a year. I know with an investment loan you can only spend 2 weeks or a certain percentage of time at the home a year. How strict is that? I am just trying to figure out what is the best avenue to do this.

As I said I am new to this, you can not hurt my feelings. If you see a major red flag somewhere in my plan hit me in the face with it!! I am just trying to gather as much information as possible before I dive into this.

I invest in both Texas and Arizona. I can tell you off the bat if you want to be successful in real estate you need to know the markets you want to invest, be consistent. If you aren't going to be around the properties most of the time then joint venture with someone who is going to be around. Things come up that need to be addressed. Opportunities arise that you will want to take advantage of.

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