Hey BP Family,
This is one of my first posts, but first for a long time. I've been interested in investing for a long time, and have read a couple books but haven't yet taken the plunge of actually purchasing a property. I currently have a full time job (50-58 hrs/ wk). I make a good salary for my age and plan on staying there fulltime, at least in the short term. So I'm wondering if anyone has experience/ advice about working a full time job while also investing in RE..? I'm paying rent in an apartment now, so I plan on owner occupying whichever property I purchase. Right now, I'm torn between a 3/2.5 2300sqft townhouse without any HOAs, or a 1600sqft 3/2.5 SFH that needs a little cosmetic work. Both properties are in B-B+ neighborhoods. I'd live in the property for around a year, allowing me to put only 3.5% down. I would make a goal to have saved at lease a 20% down payment on my next property to rent out completely. Does anyone have any advice for me? Is this a good strategy for someone that's still learning, but would like to get started with a home to live in? Any guidance would be greatly appreciated!
Knowing what I know now ... and if I were you ... I would buy a multi-family. Live in one side and rent out the other(s). Basically you can live rent/mortgage free (plus some) and save tons of money every month to go towards your next investment in a year or so.
If you are planning to buy in El Paso (I'm assuming so) make sure you pay close attention to the taxes. They are super high here in comparison to lots of other places.
Just my two cents.
@LaciJacques gave some great advise! Follow what she said and you will be down the right path!
@Steven Schuster , Are you single? I only ask because that may make a big difference in whether you take the GREAT advice that Laci just gave you (I'd do EXACTLY the same if I could rewind 15 years) or if you go with a single family because maybe the wife and/or kiddo dynamic doesn't fit as well with a multi-family. IF you're single or if your family dynamic supports it, definitely buy a 2-4 unit property and house hack for a while. It's a force multiplier for building capital reserves to really get started on the right foot.
Thanks for the advice, I'm going to look at a duplex on Sunday!
@Walter Key , I am single. House hacking a multi-family is sounding like the way to go...
Right on. Best of luck to you in your future investing successes!
If you wait three years for the next purchase you can qualify for the 3.5% down again. But you may give up a lot of opportunity in those three years. On the other hand you can actually buy as owner occupied next year and rent out this one.
Multi is definitely the best way to start, that way you can keep a close eye on the rentals while you learn.
Sweet thanks! How long have you been investing in El Paso? I've only been out here around a year, but am eager to learn more about the area!
Moved to EP in 1978 so been here a bit! Feel free to message me.
Anyone here a member of the El Paso REIA or EPIC? If so, what's your experience been? Any good leads, deals, or networking?
Sorry to hijack the post.