Newbie looking for advice!

12 Replies

Hi all!

I am very new to BP. I came across this the other day and all I can say is WOW. Between all the podcasts i have listened to and the pages of forums i have read, i have so much more knowledge than i had before. Thank you BP.

RE has always been something I have wanted to do since I was young. I still am young. I'm a 22 year old working class man. Within the last few months i have been trying to educate myself on as much as possible. I'm very fortunate that I have this opportunity to pursue my dream. 

I would love to hear from some investors in the Cincinnati area (where i currently live). I'd like to hear some opinions such as renting or flipping. Also some success stories and how you came across you first deal!

Id love to hear anything anybody has to say!!!! Open to anything and everything!

Welcome @Cody Disanto ,

At your age you might want to look at house hacking.  Lot of good areas to chose from in Cincinnati where you could buy a 2-4 family building and start building your empire.  

I really wish I got started at your age. 

Good luck!

Paul

Paul,

Thank for your reply! I appreciate the advice. House hacking is something I plan doing. 

What would your personal advice be with 50k cash upfront ? Do you still think a multi family is best option or think it is best to do a fix and flip? I am very handy , and can do almost all labor myself. 

Thank you for your reply! 

Hey Cody,

I got started with house hacking and my general advice is to cashflow as soon as possible. Doing renovations whether by yourself or with a contractor can be fine if it's adding big value to the property but often it becomes a time/money pit. For your first property I would stick to a nice turn-key place. Either multifam or house hack will work because they function practically the same if you use it as a primary residence. You can always play around with rehabs later once you have some nice cashflow to back you up.

Also, since this will likely be your 1st prop, use as little cash downpayment as possible. Yes, it will be more in interest overall but when you're starting out you need as much cash-on-hand as you can possibly save to grow your business.

Good luck bro!

With $50k cash you definitely have options.  If you have good credit, it's enough money to do a flip or put down on a house hack.  Since you're a handy guy, you could do a live in flip with either a single family or a multi-family.

Your strategy really depends on what you want to do but you definitely have a good starting point with that much cash.  Do you have an idea of the areas that you would like to target, either as a flip, house hack or rental?

Cody you came to the right place to get started! BP is a great way to start to build your foundation in real estate. The podcasts, blogs, and forums are a great place to learn. You're on the right track wanting to get started at 22. Sounds like you have a good chunk of cash to put down. I would recommend doing a house hack of a small multifamily building. You definitely have some options with $50k. A house hack is how I got started. I purchased a 5 unit building on the east side of Cincinnati in 2015. I was 24 at the time. The property was listed on the MLS for a long time. I never really thought about going to see it because it was listed so long and the price was so high. I ended up going to see it. After learning about why the seller was selling I decided to put in an offer and write a letter to the seller explaining this is my first house and the renovation plans I had for the building. The seller was selling because she inherited the building from her mother who just passed away, and the daughter did not want anything to do with rental properties. The building was listed at $189,000 and I ended up getting the building for $149,000. I would like to think my letter helped, because at the closing table she mentioned that her mother would want to sell it to someone like me. She had two other offers from large investors that she did not take. Find out what is motivating the seller of a property you're looking at. Get creative. Once you get that ball rolling with your first property you can really take off from there. I did a cash out re fi to go purchased building number 2 that I close on tomorrow actually. You're off to a great starting here on BP. A lot of great resources and people here. I recommend coming to Joe Fairless' meetup in Deer Park. It is on the last Tuesday of every month. Feel free to shoot me a message. I am happy to help you anyway that I can.

I love the idea of house hacking at a young age.  If only I'd known about that when I was younger.  If you can swing it, it's a great strategy.  Get yourself a mentor in the area and go to work for them.  I'd find the most successful investor and then ask them how you can be a resource. Jimmy Iovine said it best "be available to help".  He did that and got to produce John Lennon's record.  He worked harder than anyone else was willing to in order to provide value.  So just find out where you can add value to get some education in return. The fastest way to success is to model those that are already doing it in your area.  Do......the......work.  Good luck~!

Craig, I love all the input and advice you gave me! Very good information. I love hearing other opinion in my area. I think I would like to purchase my first property on the west side of Cincinnati. Also thanks for letting me know about that meet ups that happen! I will definitely be attending!

@Cody Disanto like others I would recommend house hacking a multi family and getting some cash flow going.  Real estate markets are peaking in places so a fix and flip is not the thing to do now unless you can move faster on them.  People need a place to stay and why not have them pay your mortgage while they live in a place you own.

Hey Cody,

I would also suggest house hacking, especially at 24. I am also looking into the same thing, at 20. Feel free to contact me, I love to network with others in my area.

Thanks,

Mark

Hello All...I wanted to make sure that I didn't give the wrong or too much information to potential investor/end buyer.  I have a property under contract and received a call from an investor today looking to schedule an appointment to come take a look, and at the end of the call was asked if the homeowners were moving out to avoid foreclosure or short sale so I responded honestly by stating it was to avoid a tax sale.  As i'm sure as in a lot of areas Ive heard stories of wholesalers have their deals taken from underneath them and just want to make sure by giving that info I didn't jeopardize that happening to myself as well.  Thank you in advance for any advice.

Daniel Harris I would suggest recording a Notice of Interest or similar document to help prevent that.  I would also add to your contract that the seller is giving you permission to do that.  

Maybe some of you could help me with this.....

Somebody I know who has a rental property in St. Bernard is moving to Florida and they gave me the opportunity to manage it. We are meeting today actually in a couple hours.... And he said we would discuss pay. This is a 2 Family and I was estimate each unit rents for around 800 a month.

What is a fair price to charge him to manage this property? I will be doing work myself when issues arise, unless it is something I cannot do.... Then I will take care of finding someone to do the work.

Any and all input helps!!!!

Thanks everyone!

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