For many years I've longed to be involved in real estate, but didn't have vision, knowledge, and frankly
the money to pursue those dreams and put action into it. Within the last couple years I've been able to position myself to have these dreams be much more tangible.
While researching and trying to invest my time in my own financial and real estate education I found bigger pockets, and for that I'm so very grateful because it's reinvigorated my drive and sense of purpose and given me the tools and confidence to pursue it. The podcasts, webinars, and forums have consumed most of my time sense I've literally become obsessed with pursuing my first deal. This is my first post on the forums and I'm hoping to get some sound advice and encouragement to get myself started with the right trajectory.
I'm trying to be savvy but not allow myself to get analysis paralysis.
Currently I want to start by house hacking into my first deal using an FHA to purchase a multifamily in the Lexington, KY area. I've moved here from Huntington, West Virginia and love the idea of minimizing or completely eliminating my cost of living expenses. Usually I travel back to Huntington on the weekends. I have money saved for my down payment closing costs and possibly some of the renovations and would ideally like to try the BRRRR strategy to gain equity faster and allow for more property acquisition in a shorter time frame. Luckily I have a home in Huntington with about $75,000 in available equity through a HELOC and a very strong income that should allow for easier access to lending.
The market in Lexington right now is very strong and finding deals within the 2% rule are basically impossible in a multifamily, most are listed on the MLS around the 1% Rent to Purchase. Huntington however (
which has a much less thriving economy) has several deals within that criteria but has and will likely continue to experience population decline. There is a pretty descent rental market there though mostly catering to students for Marshall University.
I know I need to eliminate my own rent and stop wasting money because through the week I need a place to stay where any money I spend can be building equity or wealth, but it's tempting to pursue my first deal in Huntington where for one I have a more profound understanding of the market, but also better relationships with contractors, and a much lower cost for property to get started. I could certainly achieve more doors faster in Huntington but I want to have longevity as well.
I'm looking for any advice to what could give me the best trajectory, and allow me to achieve financial freedom sooner.
Should I pursue the better market or the cheaper market, both really are home to me and within an hour and a half drive (of which I make weekly regardless)?
I'm currently working on converting the single family home in West Virginia to a duplex so I can cover the mortgage there and utilities and keep the smaller basement unit for myself when visiting.
Sorry for such a long post but there are a lot of moving parts, most of which are pertinent to any sound advice.
Really want to sink my teeth into my first deal just need some reassurance and some guidance. Thanks in advance.
Hi Rob, I'm new around here, and also very glad I found BP. I've become pretty obsessed with listening to BP podcasts myself. I just decided to listen to all of them. I think this community allows people to not get analysis paralysis because we know we have someplace to come and ask questions if we get started on a deal and get stuck or have questions.
Best of luck to you & I hope to see you around the forum.
Yea they've been an awesome tool that's helped me build confidence and find other channels to pursue education. I read the rich dad series if you haven't yet it's definitely an eye opening read.
Thanks and best of luck