Tips and tricks for a rookie

Innovative Strategies
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Tips and tricks for a rookie

Hassan Wehbeh
Member since 2019 · 4 posts · 2 votes

Hello,

I’m a rookie here and I’m trying to get started on real estate investments. To get started, I already read 3 books (one of them is “How To Invest In Real Estate” by biggerpockets, which led me to this community) and I have soooo many questions that are still left unanswered.

I’m looking to get into rental properties for a consistent cash flow which would hopefully allow me to forecast a growth and ratios.

Nonetheless, I’m in a very expensive area in Brooklyn where houses average around 1 mil. I recently ran into an apartment building that’s going for 1.7 mil and I’m still trying to figure out how to come up with that kind of money 😅 I make 100k a year.

Can someone help me with how I can come up with that kind of money? Any tip to get started would be very helpful!

Second question, is there a website that would tell me what the square foot cost is per zip codes or areas?

Any help would be greatly appreciated!!

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Kris L.
San Antonio, TX · Member since 2019 · 930 posts · 836 votes
7y

I think in your position, I would probably look into out of state investing as your area has a high cost of entry.

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  • Kris L.
    San Antonio, TX · Member since 2019 · 930 posts · 836 votes
    7y

    I think in your position, I would probably look into out of state investing as your area has a high cost of entry.

    1Reply
  • Hassan Wehbeh
    OP
    Member since 2019 · 4 posts · 2 votes
    7y

    @Kris L. True, my plan B... I was just hoping someone would have a solution. Thank you very much for your reply

    0Reply
  • Jonathan BombaciBusiness Member
    Real Estate Agent · Lowell, MA · Member since 2019 · 1k+ posts · 1k+ votes
    7y

    Do you own any property now? If not you can start by househacking. If you start with a small apartment building/multi-family )with 4 units or less) and plan to live in one of the units for at least a year, then you can do a owner occupied residential loan and get into it with a low downpayment program. Yes you will need to save up some money but I think you could get into it for less $$ than you think. 

    [email protected]978-710-8611
    Candor Realty4.760 Reviews
    WebsiteView Page
    1Reply
  • Hassan Wehbeh
    OP
    Member since 2019 · 4 posts · 2 votes
    7y

    @Jonathan Bombaci love this! I’ll start working on this, house hacking was one of my main plans but the costs have been sooo high.

    I have excellent credit do you think it’s easy to find a mortgage?

    I’m sorry for my stupid questions but I’m trying to learn as much as possible.

    0Reply
  • Jonathan BombaciBusiness Member
    Real Estate Agent · Lowell, MA · Member since 2019 · 1k+ posts · 1k+ votes
    7y

    I'd recommend reaching out to a local lender to see what they can put together for you. I think you can do a residential FHA loan up to (maybe over) $700,000 which would only require you to come up with 3.5% for the downpayment. If you're in a really high cost area, like Brooklyn, then some of the larger local institutions will have First Time Home Buyer programs that can get you into those higher mortgage amounts with very low down payments especially if you have great credit. The great thing is that they'll use the rents from the other units you're not panning to live in to help qualify you for the loan. So if you find a 4 family and the other 3 units rent for $2000 each (probably more in your market) then they can use up to 75% of that $6000 a month ($4500) as extra income on your loan application.

    I'm up in MA and one of the credit unions I tend to work with only require a 5% downpayment for people with great credit which helps since many of the 3-4 families close to Boston are well over $1M.

    [email protected]978-710-8611
    Candor Realty4.760 Reviews
    WebsiteView Page
    1Reply
  • Hassan Wehbeh
    OP
    Member since 2019 · 4 posts · 2 votes
    7y

    @Jonathan Bombaci thank you very much! I will follow those steps and see where it takes me! You’ve been very helpful and I really appreciate that

    1Reply
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