I’ve recently been thinking about my future and what I can do to have financial freedom for myself and children. I dabbled with different business ideas and careers that peak my interest and real estate has done that for me. I’ve done a ton of research about ways I can begin this new found journey but I would like some tips from a seasoned investor on where to begin. Anything helps! Apparently I’m not looking for a mentor so tips will suffice.
@Michael Robbins Neither. I want to become an investor. I found that house hacking to be one of the best fits for a start from my research. I could be wrong.
Before you can house hack you first need to acquire a property. Get pre approved for a loan, go shopping, find a property you can afford, buy it and then rent it out. Use the money from the rent to cover your mortgage or a large portion of your mortgage.
Minneapolis, MN · Member since 2020 · 61 posts · 56 votes
5y
@Kiana Johnson
House hacking can go different ways. Sure, buying a fourplex might be the most profitable way to go whilst occupying 1/4 of the units and renting out the other 3. However, it isn’t the only way. You can use different, smaller investment vehicles (properties) to get started. I.E owning a primary residence and renting out your basement/extra bedroom.
Investor · Suwanee, GA · Member since 2020 · 182 posts · 151 votes
5y
Consider what gives you a competitive advantage. For example in my case when I started I had no reserves, no kids, no wife but had decent income, good full time job, willing to take on a lot if risk, willing to put in 30 hours a week, low debt, and militarily service. That put me in a situation to do particular deals using particular financing. Fast forward 18 years I have better income, no debt, wife and 2 kids. Solid tax returns with rental income for the past 15 years.
This allows me do do different deals that I was not able to do or interested in when I started. For example, I housed hacked in my 20s. Today my wife and family does not allow that. I have more to put down today which opens different financing options than when I was 20. Today my financial and real estate network is a lot larger than when I started and gives me more opportunities. I am not willing to put in more than 5 hours a week into real estate. I am in a different place in my life.
In summary: What do you have working in your favor that gives you an advantage to do th ours 1st deal. Consider your location, appetite for risk, income, credit, cash reserves, full time job, amount of time commitment....
answer these questions in the post so we can get your life picture and ways to exploit your talents and assets.
The way we start in real estate varies. However, you can do it!
House hacking can go different ways. Sure, buying a fourplex might be the most profitable way to go whilst occupying 1/4 of the units and renting out the other 3. However, it isn’t the only way. You can use different, smaller investment vehicles (properties) to get started. I.E owning a primary residence and renting out your basement/extra bedroom.
In Vegas this could be the way. There are little Dinky condos in decent areas not in the HOOD going for $120,ooo or so.