Newbie from Wichita, Kansas

12 Replies

Hey BP community, I am new to real estate investing and am glad that I found bigger pockets to help me learn, network, and grow. I grew up in the Midwest and am 23 years old, about to close on my first deal which is a househacked duplex. I work full time at QuikTrip and am working towards earning a business degree as a full time student. After reading dozens of real estate books I have decided to set my focus on acquiring small multifamily properties of 2-4 units and a long term rental strategy. I will be closing on my first deal in two weeks and plan to house hack a duplex in Wichita, Kansas to gain experience as a landlord while living for free. A year from now I would like to own atleast 3 multifamily properties and have made it my long term goal to become financially free by the time I am 28 years old (5 years from now). I became interested in real estate investing after I tried my hand in the stock market and didn't come out as well as I hoped. Research about other investments led me to "Rich Dad, Poor Dad" and changed my perspective completely. I am excited to officially begin my journey in real estate investing in a few weeks and have made up my mind to stick this thing out and try and learn until it works. Though I have only been in the full time workforce for three years, I am already over punching the clock day in and day out. My "why" is that I want to take control of my time and spend it doing the things I love and with the people that matter the most. -Jake Henderson

Welcome! It looks like you are off to a terrific start and you certainly have the right mindset to succeed. If you are looking for other investors in the area I have had good luck at the local REIA meetings. Hope to meet you there!

@Jacob Henderson welcome! You are definitely on the right track to being financially free and you definitely got the right mindset to get you there. From what i been hearing and the few i analyzed, multifamily residential are overpriced in. Regardless of what I just said there will always be opportunity in the future! Good luck

-Jimmy Dang

Jacob,

Welcome to BP!

Financial freedom in 5 years is a very aggressive goal. Just be cautious in what types of returns you chase. The higher the CoC return, the higher the risk. Depending on the numbers behind your goals, it very well could take more than 5 years. Just keep that in mind.

How are you planning on funding your deals? 

Good luck!!

@Brian Wilson for this deal I am doing an owner occupied FHA loan. I will need to explore different ways to find future deals. I plan to use the BRRRR method utilizing private money and then refinancing into a traditional loan to pull the cash back out. Do you have any suggestions or any ideas that may work better?
Originally posted by @Jacob Henderson :
@Brian Wilson for this deal I am doing an owner occupied FHA loan. I will need to explore different ways to find future deals. I plan to use the BRRRR method utilizing private money and then refinancing into a traditional loan to pull the cash back out. Do you have any suggestions or any ideas that may work better?

Only input I have is that you refi out of the FHA as soon as you have enough equity.

I think that idea (BRRRR method) is great, but saying you plan on refinancing your properties into conventional loans involves various aspects. For example, what lenders have you shopped for a cash out refi? Seasoning periods usually last 12 months to do a full LTV cash out refi. Limiting your capital to purchase more deals.

I guess what I'm getting at is the time span of it all, 3 properties in 1 year when you're a new college grad seems a bit unrealistic. Unless you're a white collar worker, most new grads start in the 40-55k range. So considering that (even with a solid PML) you still need some source of capital to cover holding costs and the other various costs associated with owning rentals. 

Just trying to be the voice of reason. If you can pull it off, great! Being a young guy in the REI space is very easy to get lost in the home run stories of other investors (speaking from experience).

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