New to real estate- Seeking advice.
Hi everyone,
I am starting fresh and have little to no experience with real estate. However, I have been interested in real estate since graduating from college and always wanted to invest in it, but I don't really know where to start. I know the market is pretty tough right now. However, I feel that it is never too late for me to join. My plan is to become an investor, I want to be able to leave my 9-5 job and be able to live comfortably. I want to be able to retire my parents from the farming industry and have them live financially free under my support. I'm seeking advice from all investors. Please educate me on how I can start this Journey and be successful at it. I'm looking forward to all your comments. Thank you.
Most Popular Reply
Khang,
First figure out what your goal is and then work backwards from there! If you need $5,000 cashflow per month to live comfortably, then you would need 50 properties that cashflow $100 a month (for easy math but you get my point).
The most important step is figuring out if you can even qualify for funds to purchase real estate. Network with some lenders that work with investors and determine how much you can qualify for. They will look at your debt-to-income, credit, income history, etc.
Figure out how much money you qualify for and then start by house hacking a 2-4 unit property. Don't expect upfront cash flow because you will be:
1) Occupying one of the units
2) Putting low money down which means your monthly mortgage payment will be higher
3) You have to pay PMI (since you're putting less than 20% down, this gives the lender further security if you were to default)
Start with house hacking and look at real estate as a long term wealth building strategy. When you house hack, the goal is to learn to manage a rental property and pay less than you would renting.
Hope this helps.