All Forum Posts by: Tina Tsysh

I agree with @Brian G.. $50k is definitely not enough to purchase a home and build an ADU from scratch. In the best case scenario, your ADU might run you about $50k (it is very costly getting utilities to it and you have to get many permits and do lots of different inspections). The most amount of rent you can get in a house is by renting rooms to individuals. If you don't want to deal with loud college students, advertise the property to working professionals. And if you have the time and local laws allow airbnb, you might want to look into that. I believe that these two options will generate you the highest cash flow and will allow you to live in the house for free. Good luck!

Buying something near the water in that price range might be tough. Just know that you will be getting something with A LOT of work to be done. Maybe you can move further in land where there are better prices. Check out Anaheim / Santa Ana / Orange area. Those places are only a 20-30 minute drive from the beach but prices there are much lower. Good luck! 

Congrats on switching to bigger stuff! I would recommend taking a course on Udemy about mutlifamily analysis - those courses are pretty cheap (usually under $20) and come with excel models that you can download and use on your future deals. I recommend buying a course from Justin Kivel - he has thousands of students and thousands of reviews. I just checked and he has a course on multifamily. I am sure it will be worth every buck. I took many of his courses and they were great. Hope this helps and if you have any questions feel free to reach out! 

Were the tenants already in place before you purchased the property or did you move them in? If they have been there before you purchased the property, ask for their signed lease and see what it says about dogs and animals. If their lease allows pets, you would have to change your insurance policy because you cannot evict tenants if they didn't break the lease. On the other hand, if their lease says no pets allowed, then you can give them a notice to vacate the premises on the ground that they violated the lease agreement. For your next tenants just make sure to do more due diligence. 

Good luck! 

Being a real estate agent is a full-time job and it takes a lot of commitment and hard work. You have to put 110%, especially at the start of your career, if you want to succeed. You also have to understand that you won't make money on day 1 on the job. It is commission based and it might take you a while to close your first deal, so make sure you have the finances in place to cover that period of time. I would recommend reading David Green's new book "Sold - Every Real Estate agent's guide to building a profitable business" and see if that's something you see yourself doing. I believe David said that about 80% of real estate agents quit within their first year. So it's not as easy and lavish as it might seem! But if you get a good mentor and the right person to guide you, you can be very successful! 

I would have to agree with the other BP members and say that 21 is definitely not too young.
I am in the same position as you - 21 and a senior in college and plan on buying my first property at the end of the summer once I start my full-time W2 job. I have spoken to a few lenders already and all of them said that us (recent college graduates) don't have to show 2 years of tax returns in order to get a mortgage. Lenders can use an offer letter from your employer as your "income base" if your full-time job is in the same field as your degree. This gives us an advantage because we don't have to wait for 2 years to build your tax history and can begin investing right out of college. Listen to BP RE episode with Scott 
McGillivray and how he started investing when he was in college. 

Hope this was helpful and feel free to chat with me if you have more questions! Best of luck. 

Feel

You have to find a partner in a case like this. If everything went well with your first project, you can use it as an example to pitch to your potential partners to show that you have the experience. Read Brandon Turner's book "Investing in real estate with no money down." If you can't qualify for a loan, you can try talking to a hard money lender BUT you need some funds to pay them monthly interest. Depending on your loan size, $750 / month might or might not cover it.

 Also make sure that you get permits and certificate of occupancy for your fixed up home to not get yourself in trouble. 

Everything depends on the neighborhood that the house is in because at the end of the day - the market dictates everything. Since your ARV is based on comps nearby, I would see what other recently renovated homes in the area have. I think now people enjoy an open kitchen concept rather than a closed one. It makes the home feel bigger and again, depending on comps, will allow you to charge higher rent.

Also remember that you do not want to have the nicest house on the block because the comps won't back the higher price. Hope this helps !

Everything is about demand and supply. If demand > supply, you are in a seller's market. If supply > demand, you are in a buyer's market. As @Aaron K. mentioned, right now we are in a seller's market because the housing inventory is at an all-time low and there is a lot of demand, which causes home prices to increase. Homes fly off the market in days. On the other hand, if there were a lot of homes for sale, they were sitting on the market for a long time, and no one was buying, then you are in a buyer's market. In a buyer's market sellers will typically agree to take less than asking price because not many people are buying homes. Hope this helps! 

What helped me tremendously when I was your age was getting a job so that you are able to show that income to your lender and get pre-approved once you are ready to buy. Also start by getting credit cards when you turn 18 and build that credit because credit is vital. The sooner you start the better it is. Read as many books as you possibly can and try to get a few internships / real estate related jobs under your belt. Listen to podcasts daily and take notes. Try to talk to as many people because everyone loves sharing advice with younger people and those who are just getting started.

Good luck and feel free to reach out with any questions!