Just starting out, looking for some advice

3 Replies

Hey everyone! I'm new here, new to property investments and I'm looking to get started!

My goal is through house hacking, make around $500 every month for a year, then move out and try making around $1100 when I'm not living there.

My financial background: 

Right now I have around 50k in a CD which gives me a 2.8% APY. I started investing in a CD because I'm young (23yo) and I heard it was the safest investment out there. My CD I've been doing annual and ends in February of next year. When it ends instead of renewing the CD I think investing into rental property would give me a better annual cash on cash ROI if done right.

My plan:

I would like to buy a 3 bedroom condo in the range of 250k using an FHH loan, house hack it for a year then possibly move out and do the same thing in another city.

My concerns:

Since this is my first time getting involved in rental properties, there are a million questions I have while I'm still learning, here are some that come to mind:

-How easy is it to find tenants that are willing to split a condo with you? Obviously easier in a college town, but what about a vacation spot near the beach? What are my options here?

-Would getting a duplex be easier that way a single family can be in the other unit while I only have to find one tenant to share with?

-What is the best way to meet a property manager when I hopefully move out to oversee the property? How much $ do they require for their services and what kind of reports should I ask of them?

If anyone could help and give their opinions on my strategy that would be much appreciated!

Thanks

-Evan

Not an answer to one of your questions, sorry, but a tip I’ve found useful when renting and sharing a condo:

Put a clause in the contract that says you can come into their house at anytime from 8 am to 8 pm. It’s a good way to annoy them into doing what you want

@Evan Mendoza, Welcome to BP bud.  There are a lot great articles under the education section.  BP also has some free online books about investing and renting.  You really cannot get someone to type a reply to tell you everything about investing if you have not even read some of the free guides on it.  it is also tough to even try to answer your questions as we don't what state town or even what part of the country you are in.  The advice for New York and Las Vegas is wildly different.  We don't know how much money you make at your job or how much free time you have to manage a rental yourself or even to fix one up.  Tell us about yourself and what you are looking for and we will recommend some articles or books for you to read.  Be sure to set some key word alerts to see pop ups on areas or locations of interest to you.  My first piece of advice is start learning your market.  Get on Zillow or Realestate.com or Redfin and start looking at prices, locations and look to see how much properties are renting for.  You won't know what a deal is until you learn your market.  Good luck.

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@Evan Mendoza ill answer this one:

Would getting a duplex be easier that way a single family can be in the other unit while I only have to find one tenant to share with?

I would like to throw the idea of getting a single family to occupy that other unit and you and a roommate stay in the other side. You are double hacking with the single family most likely paying the duplex off and your roommate providing you cash flow while you are hacking. Just a thought im still a new "investor" . i put the " because i have not actually taken the leap yet.

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