wholesaling and house hacking newbie

3 Replies

House hack. It's a simple, straightforward way to turn your first property into an investment and not a liability. Buy the most desirable house in the trendiest neighborhood that the bank will prequalify you to purchase. The reason for this is that you'll want to rent the open rooms to tenants and typically when you rent by the room you're target audience is college-aged people who want to be close to action.

Prioritize not picking people you want to party with since you're college aged too, and run your house like a business. If you can afford a 3/2 you can get two renters who will cover, or nearly cover all your living and utility expenses. Then study, study, study. Join local real estate meetups. Find groups on social media. Pay attention to your mailbox. You probably see mailers from wholesalers and house flippers wherever you live now. Call those people. Explain who you are, ask questions when able, learn from their phone demeanor. Take the good, leave the bad.

You can try to wholesale early, but chances are you won't know enough about market cost or conditions to be successful. So many hopeful new investors crash into wholesaling and give it a bad name. In reality, wholesalers need to be the most knowledgeable investors in the market because they are dealing with the thinnest margins.

If you simply house hack a new property once every year until you're twenty-seven, you'll have a comfortable passive income to live off, and then you can try anything. That would bring you financial freedom. Best of luck!

Originally posted by @Jody Sperling :

House hack. It's a simple, straightforward way to turn your first property into an investment and not a liability. Buy the most desirable house in the trendiest neighborhood that the bank will prequalify you to purchase. The reason for this is that you'll want to rent the open rooms to tenants and typically when you rent by the room you're target audience is college-aged people who want to be close to action.

Prioritize not picking people you want to party with since you're college aged too, and run your house like a business. If you can afford a 3/2 you can get two renters who will cover, or nearly cover all your living and utility expenses. Then study, study, study. Join local real estate meetups. Find groups on social media. Pay attention to your mailbox. You probably see mailers from wholesalers and house flippers wherever you live now. Call those people. Explain who you are, ask questions when able, learn from their phone demeanor. Take the good, leave the bad.

You can try to wholesale early, but chances are you won't know enough about market cost or conditions to be successful. So many hopeful new investors crash into wholesaling and give it a bad name. In reality, wholesalers need to be the most knowledgeable investors in the market because they are dealing with the thinnest margins.

If you simply house hack a new property once every year until you're twenty-seven, you'll have a comfortable passive income to live off, and then you can try anything. That would bring you financial freedom. Best of luck!

Def great advice Jody.  Those margins can be really thin but w/the seasoned winners putting the time in to find good deals there could be big windfalls. 

 

As someone who was doing RE investing in college, make sure you have a job (if you go to the bank for money lendng), or get creative (hard money loan with cash out refi) if you want to househack. It took me a fairly long time personally to get my real estate deals financed, but it's definitely well worth the struggle. Otherwise I agree with the people above: find a mentor and learn from them. Network. Good luck!