Hey BP team,
My name is James Derrick and I am finally serious about beginning this real estate journey. I am most interested in B&H passive income (possibly multifamily house hack), but am also considering flipping as a means of income as that is built. I have a relatively high paying career that has allowed this single 29 y/o to save a decent nest egg. However, I would like to begin my exit from the lifestyle this career demands.
I currently own one property that I have lived at for two years, a one bedroom high rise just outside of the Texas Medical Center. Looking back, it was definitely an emotional based decision. I fell in love with the building and would be going from a 45-90 minute commute (one way) to a 6 minute commute. Purchased with a 3% down FHA loan and a handful of additional principal payments, I have only about $20k in equity of the property. The high monthly payment from the FHA loan + the high monthly HOA does not make this a good rental property as the two year ago me assumed I would end up doing. I am most likely looking to exit the property if I find a great house hack opportunity.
Thank you for reading and thanks in advance for any help provided!
It sounds like you have a solid plan in place and realize how much HOA fees can eat returns, a house hack may indeed suit you well even if it means a longer commute.
The HOA fees destroy ability to break even, let alone cashflow! Considered attempting to Airbnb, but apparently short term leasing is a violation of the HOA.
Hello! @James Derrick
Welcome to BP, and congratulations on making the decision to invest in your future via real estate.
I have written a few blog posts that may help you get started here on BP, and with your investing. Please click on the links, give them a read, and share your thoughts in the comments.
First is a post that I feel will help not get overwhelmed with the amount of info that is here on BP:
The second is a post that will help get you focused with your real estate investing goals:
The last one is a post that will help you choose an “investor friendly” real estate agent. There are many agents out there, but it’s important to choose the right one.
I love answering questions if you have any! Good Luck :)
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