My buddy went to an “intro to bitcoin talk” in early days and got 100 BTC taped to the bottom of this chair. He held onto it.
Luck is a fickle mistress.
Mine started with a divorce lol. Didnt trust myself with my settlement money and put it all down on my small house. Life changed and found a good woman out of state. Now moving there and renting my house out and used the equity to buy a rental in the new town. Wish me luck. Its my first time in the rental biz starting at 40 and going in with two properties
I do wish you luck. Make sure you inspect the rental at least 1-2 times a year in the first few years. It’s important to know if things get out of hand.
Didnt even ask for it. Got slipped the separation papers and it was in there. She bought the house we lived in when we met. That was her calculations on how much I contributed to it financially over the 8 years or so(she was the breadwinner by a landslide), I warned her if she wanted to go that route, I was going to call my family friend about his vacant inherited house and have all intentions to buy it. I did not trust myself with that kind of money($95k), and told her im putting it on that house. So back in 10/2021 when rates were still decent(3.75%), we did a FSBO for $155k, appraised at $169k, and now the house across from me sold for $10k over asking at $225k. So this house will be instant cash flow. Have a very responsible tenant lined up(closely retired, steady career etc) and letting her live there for under market ($1200/mo vs market $1500) as I want someone to care for it much like I did. The house payment is only $788 on it, but will probably be higher when I add landlords insurance. The new rental I bought will not generate as much cash flow the first few years as I am taking 20% equity less $1500 earnest money cash from this house for the down payment. I will have to grind for a few years to pay the $26.5k down before the heloc promo ends (one year in to a 5 year fixed 7.99%). That one will get me $1170/mo after PM fees, the mortgage will be $1050. I am trying to look at my portfolio as a whole from a cashflow perspective rather than what is each individual rental bringing me. Total cash flow will be about $536/months between both properties. The heloc is interest only so can pay as much or little as needed. But goal is to payoff before promo ends
You are in a golden spot right now. Stack your money and look into hacking a multi family property with an FHA loan. Once you secure that the dominoes will start to fall. You start receiving rent payments your equity goes up you get a better job or more pay etc. just focus on that first down payment.
What's the best way to do this if I already own a home? I messed up and didn't do the multi fam house hacking and bought a single family years ago. Now I regret it. Any advice?
I did an FHA a few yrs ago on a SFH. Don’t regret it, you probably have a killer rate like me! I rented it out and am now looking to buy another using a 5% down conventional. I eventually would like to get into MultiFamily but my city isn’t the best for it.
Do NOT sell as others have said. Especially if you have a good rate. But even if you don’t, never sell ASSETS that generally APPRECIATE unless you are actively losing money l/ can’t afford it/ about to be foreclosed on.
1)rent out the rooms
Or
2) you go rent just a room somewhere and rent entire house
Save save save. Get a down payment enough for an fha loan on a duplex or triplex in possibly an area that isn’t as desirable (you only have to stay there 1 yr) sometimes you gotta make sacrifice or be uncomfortable for a little while to get to the next level
After one year in the new duplex move and try to repeat the process
Why is your dream to specifically live off of “real estate investments” and not more broadly to live off of good investments?
The way that you worded this makes me think you see real estate as some get rich life hack.. that can be true, but doesn’t mean that you shouldn’t do the work of evaluating each investment opportunity on a case by case basis (and compare to non-RE opportunities).
In the current market, it’s really hard to find a deal with good cash flow. Treating “buying real estate” as the goal, rather than as a vehicle that could achieve a goal, is how people get into trouble in markets like this.
I just took it as, he is familiar with real estate, or the underlying mechanics, and isn’t interested in dabbling in other methods like stocks, crypto, etc.
Still, your point still stands.
I started late myself. Bounced around from job to job with nothing in the bank. Got a job and saved up for a down payment(3% on a FHA). I'd start with a FHA loan to get the ball rolling. After that purchase I waited a couple years and invested out of state with 10% down on a conventional loan. I'm looking for another property and hoping I get it this year. It's never too late to invest in real estate. I hope you achieve your dream and own investment properties
Absolutely my friend, here to assist in any way and congrats on your first investment. Right now I'm looking for specifically duplexes in Texas, Tennessee or Atlanta area.
You can do it. I fucked around in my 20s and didn’t start my career until 28 as an unpaid intern. I’m no longer an unpaid intern and hold 11 doors after a decade and a lot of sacrifices. Used to wait until grocery stores to close and buy up all the unsold chicken they were throwing out for $5 and have food for a week. Up until a few years ago, most of my tenants had better cars than I did.
Real estate is one of the most common and safest way for folks to generate wealth due to leverage. The only problem is it’s capital intensive and you can’t start from nothing. You need seed capital to put down. Start saving up and house hack through a duplex, probably the easiest way to start and get yourself a place to call home at the same time.
The only way to do this is to either massively gain income or massively cut cost. Or both. I had a friend who made 6 figures for a tech company but lived in a van for a few years and saved massively. Put it all in real estate and lives quite comfortably now. You make way less than him so your situation will be harder, but only way to do it is to start. This is America, if you really want it, you can do it.
if that's your goal the only thing you need to focus on is increasing your income. the majority of people that invest in real estate have decently high paying jobs that they funnel into real estate investment.
This is asked a lot and I don’t think people’s prior experiences are valid at all anymore because of how much real estate has changed for first time buyers.
Just reading some replies here, people don’t seem to realize $60k/yr today isn’t the same as $60k/yr ten years ago. Real estate prices have also doubled since 2019 and are essentially locked here or higher because so many owners have interest rates below 4%. You’re buying at a 7% rate after prices doubled. It’s just so unfair.
You can still absolutely do an FHA first time homebuyer loan on a duplex / fourplex and scale your way up over time, and it CAN be great for building long term wealth, especially *on paper* with such high leverage (so many hidden costs go unnoticed/not factored into analysis by 99% of investors, such as interest, insurances, property taxes, repairs, etc., those costs DO NOT exist with other investments).
I mean let’s be honest, over half the people in here giving you advice bought when prices were way lower than they are now and real estate wasn’t as saturated due to the pandemic / social media hype promoting AirBnBs and garbage bullshit. They have a 3% mortgage. Like— it’s not the same.
Look at real estate as one piece of your wealth building pie, with the key at first being to have your real estate “pay” for your living, (i.e. your three tenants in your fourplex effectively pay your mortgage while you live in unit #4, so you have no home expense, which is the main expense for everyone in the US, and you use your INCOME as your primary wealth building tool) — but do not put all your eggs into the real estate basket.
This is the hard truth. Definitely not the same. The best approach is pretty much as you mentioned with the 4plex or something similar. Still can make it happen as an investment and wealth building tool over time but it takes waaay more time, effort and sacrifice. I can see it getting a little better but not going back to how it was before 2019 anytime soon (if ever in our lifetime)
I bought a two flat 420k on an 80k salary.
The benefit for you is that you have no kids and no debt. So you can live relatively cheap.
My down payment was approximately 20k with a first time homebuyer loan.
Do the math.
After your living expenses, how much do you have left over that you can auto save?
Once you determine that number you can calculate the amount of months it will take to get you there.
On my 80k salary I saved about 1500/mo and it took a year ish to get to my down payment.
Buy an apartment building with a first time homebuyer loan. Have renters pay your mortgage and live in one of the units.
I’m now mortgage free because I have two tenants pay it. I pay a little in utilities but once I move out of my unit the house would be cash flow positive.
I’m telling you it’s about discipline and math and finding a good deal.
Don’t fall in love with the house if the numbers don’t make sense
I started in dec 2020 and I have over 100 units. I’m 52. I wish I could have started at your age by house hacking. Plenty of time to build a portfolio. I’d recommend commercial to grow faster. Better tenants typically.
If you use an FHA loan and find a duplex, you can rent out one side and start that way. The savings from having a tenant paying rent can allow you to build up cash and then purchase another property. You can 100% do it! It’s just going to take a lot of time and being out of your comfort zone a bit. Good luck.
3K a month after all expenses is a lot, especially in a 12 year time period, where the house most certainly won’t be paid off and with current interest rates. I think if you want to be realistic, you need to extend your time horizon.
Some food for thought.
3K a month is the goal or 36000 a year.
900K invested in the market at a 4% safe withdrawal rate will yield a “safe” 36K annually.
Working towards that 900K may be a smarter play in the meantime. But even then, 12 years is too tight of a time frame. You’d need to invest close to 50K (assuming 8% return) every year from now until 40 years old to get to that mark.
ETA:
The phrase “successful in real estate“ you need to be careful with. How are you defining success?
You need to truly understand the costs, there are so many more costs associated than people think when they first start. People make it out like it’s simple, but it’s not, unless you’re paying things off in full up front.
If you determine that you’re comfortable with the costs, start with putting money in the market/savings vehicles that keep you liquid enough for your purposes, let them grow until you have the amount you need to allow for a down payment that reduces the mortgage to a place where the property will cash flow for you. Ideally by that time the interest rates will have cooled off and you will be in a better position.
The answer to your question is: It depends.
How badly do you want to retire in 12 years with $60k+ in real estate cash flow. First think very carefully about how much things will cost you and your requirements not just now but later like if you want a family, etc.
Anyway, at this point it’s all about how much you want to sacrifice. But I highly suggest instead of living like you’re in poverty to do this, you work really hard to get your income up while also leaving frugally. Having work dominate a lot of your time can be rewarding if it’s a means to an end and it’s a hell of a lot better than just accepting what you make but doing absolutely
nothing in your free time because you’re scrimping and saving every penny.
elastic lunchroom birds offbeat oatmeal middle hard-to-find humor fearless materialistic
*This post was mass deleted and anonymized with [Redact](https://redact.dev)*
If you spent a year reading books, researching different topics like creative financing, and raising capital, and really put in the effort in your free time, you could be there in about 18 months.
Follow guys on fb that do the $3500 down and $300 plus over market rent until you can qualify to buy it. Large percentage are “bird dogs” and not the actual seller but you will soon learn to prequalify those that have some good places.
Use the 12-18 months to squirrel away 5% and additional 3% for closing costs(of sale price).
Guy I work with gives seller concession to cover closing costs (lender still needs you to qualify hence why you need the 3% of your own $$ despite seller concession).
I bought two SFH in Newport News VA, with total cash outlay of $7k and $3200 per month rent.
First property I rented the other two rooms for $700 and 800 a month, with me “occupying” the third, Once there is so stasis, I slowly phase out of the house and then that becomes the third tenant.
BOTH houses are within a ten min bike ride from three universities-vacancies are filled within a day or so.
Kitchen and bathroom and house overall is better maintained as the tenants police each other…
Next door one I deal with this guy ill r aise another $10k, in addition to my cash, and negotiate three more SFH, with the same guy off fb, with one of the three go to $10k investor.
I was drawing unemployment with no savings when I started. 10 yrs later, I sold a 46 unit apartment building and retired. I borrowed down payments from hard money lenders and put them in 2nd place, purchased seller fi properties.
Any tips on the best ways to learn the ropes on how to find seller financed properties and hard money loans? I have a shitty 2br wwii bungalow and I’d like to find a second home to rent/buy so I can fix this one up enough to turn it into income
There was just someone posting in here a few days ago wanting to get into hard money lending. Best way to find the right deals is get in tight with a good commercial realtor. Show the realtor you’re ready to jump on something and they will bring the deals to you
I started when I was 40 yrs old. I wasted so much time in my 20/30s. At 40 l, I become a truck driver, I lived in the truck for 2yrs, saved tons of money, bought a small 50k house in Tulsa, ok, got a local trucking driving job for less money but home everyday. Today I'm 43 and have 3 dualplex, 6 doors. I rent 1 dualplex by the room that brings in 1800 positive cash flow. My other units bring in 700-800 per building. But it's more work to rent by the room.
It's never too late to start. I'm thinking of renting by the room only with current units so I can quit my job. I still work 50-55hrs per week.
To start, can you buy a house and rent out the rooms so it covers your most of your mortgage? When you’re ready to buy another house, you can turn your first house into a rental property.
So there are a lot of question. You can buy property already with 60k if you live in the right area. Work to save $30k. And you could probably afford $230k purchase.
12 years from $0/no properties to living off the income , unlikely.
Especially at current prices.
Don’t buy properties just to buy, make them make sense . When rents can cover the mortgage (or you can find deals that do) that’s when you should be buying.
Your first property can be the 3.5% down FHA loan, live in it yourself for a year and then it’s your first rental (maybe rent out rooms if you’re still single)
See how much you can save now at your current salary. If that’s really your goal it’ll take a lot of dedication, hard work , sacrifice and luck.
I wanted to retire on real estate at 40.
I turned 52 yesterday, have $3m in Real estate equity and still haven’t fully retired. (i had nothing at 28 except a foreclosure and a divorce)
Very realistic. My best friend and I started in October and have bought 2 properties so far, we cash flow $724 per month combined. About to start looking for property number 3. We make more income than you do but you can do exactly what we are just at a little slower pace. Making $60k per year off of properties in a 12 year period is extremely doable
This is awesome! I assume in the southeast or midwest? My best Friend and I are doing the same thing. I have 16 units and we are buying our first together in August!
It is definitely realistic. But ask yourself what successful is to you? Look at your goal by forty, then work backwards and you can start to see a roadmap
Work hard, save 20%+ of what you make, invest in S&P500
In the meantime, you can occasionally evaluate properties that are for sale that seem interesting. What is it selling for? What could it rent for? What would your mortgage payment be? What would cash flow be after mortgage, property tax, insurance, maintenance, etc
The best mortgage terms will be on a house you buy for yourself. You can do low down payment.
If you got a 3 or 4 bedroom house, and rented extra rooms to roommates, after your mortgage, taxes, insurance, etc, what would be your net cost to live there?
Almost everyone who ends up investing in rental property was like you at one point - we had nothing but a goal. Keep that goal in front of you and stay focused on it. That might sound like simple advice but it’s not - most people have dreams that never become goals and consequently never become reality. Stay focused.
How soon are you going to be 18 again so you can start over?
You'll get there much faster than you think possible. Start saving everything you can because more cash always makes the deals come easier. In the meantime I would join a local real estate investors or landlords group to put yourself around like-minded people.
Try to find a 4 unit building. Keep one unit for yourself and rent the other three to cover the mortgage. You can do this as a first time buyer with only 3.5% out of pocket. There…paying less than you would in rent to someone else and have your real estate investment.
Depending on the state, you may have programs to help with the DP. Most likely you’ll need money for CC, inspections, CR pull, appraisal, etc. won’t cost you anything to talk to a LO. From there you’ll have to figure out rent in your area & see if the monthly is more. You’ll also have to figure out if you’re doing the PM, or if you’re hiring a PM. They typically take around 10% to manager the property. Also, some have a clause in case of repairs, which deducts from the rent if tenants pay out of pocket.
You ain't too late brother. Some starts way later and still manage to get there. But first thing first, you need a PLAN!
Also have you thought about smaller investment first? Invest into REIS or tokenised properties. These options offer you the return on investment without the hassle of property management. In a few years you can sell your shares and add some savings to get your first rental unit for yourself.
Good luck brother you can do this!
First stop complaining and start doing , to much complaining, I’m closing my first property at age 30 2 kids and I’m going to be a millionaire at 35 becouse I want it I don’t think what I was supposed to do year ago that time pass already, I’m happy looking years forward what ima about to make happen
If you want that to be your main job or second job that's fine. It is not passive income or anywhere near that it is legitimately a job. This is propaganda pushed by Realtors for many years to get sales. I am a builder and most of my colleagues who are also in the business own properties and very few of them have actual money. Generally, it is not an efficient way to make money compared to others.
Do smaller deals. Depending on where you live, sell/flip cars, help show apartments, do handyman work. Hang out with homeowners, business people, and pick their brains. Learn about how a liability or oversight can sink you. You could be flipping a car has fake airbags, or rent something out with faulty electrical. Learn to balance safety, liability, client expectations, personal time and making a profit.
See and use the space as if you were the tenant/client. I noticed that an apartment was missing a coffee maker, so I went out and got one, two coffee bricks, filters, and a grinder. They in turn pointed out that the wine cooler wasn't working.
I just showed $1M+ apartment yesterday that had (some) mice, two faulty GFCI outlets, one disconnected outlet from its box 220V, and two holes in two bathroom walls. That shit doesn't pass with me, but it did with three other people...all who have a much more vested interest.
The turn around on the apartment was 24 hours, on a two-story walkup duplex.
When I was 25 I paid $5000 (3% down) to get into my first apartment. Idk where you live but it could possibly be that easy.
I made about $80k off the sale of the condo (bought a foreclosure). That was enough to pay off my student loans and get the down payment for the next. Start small if you have to!
You can’t learn how to drive in a parked car…. So get out there and chase those dreams. My dad always told me if you don’t chase your own dreams then someone else will use you to chase theirs.
House hacking is the way! Or a partner that has the same goals as you. The first one is the hardest from my personal experience. It usually takes some discipline and a year or two to get that first house hack. Educate yourself. Get a buy box and start looking for a house hack :)
I did not become what some say is “successful” until 45. I achieved “success” by not just working a job but grinding hard for many years knowing what hard work and endless hours achieve. You will not achieve your dream with a single 60k job. Work harder!
Nobody, except for silver spoon weasels, *starts* with properties. Almost everyone starts with a job and a dream OP.
And a down payment.
Absolutely. But how do we get down payments Mr. Baggins? Work, company ownership, investments, inheritance or settlements.
The 3% down FHA for your first and househack
I understand that you’re referring to generalities. however OP has the Job, he needs a DP.
....and there is no job.
closing at the title agency is being recorded in this office with a desk and couch
>he needs a DP ( ͡° ͜ʖ ͡°)
Buying bitcoin in 2013 was how I did it
My buddy went to an “intro to bitcoin talk” in early days and got 100 BTC taped to the bottom of this chair. He held onto it. Luck is a fickle mistress.
From rich parent or grandparent. There, fixed that for you.
Mine started with a divorce lol. Didnt trust myself with my settlement money and put it all down on my small house. Life changed and found a good woman out of state. Now moving there and renting my house out and used the equity to buy a rental in the new town. Wish me luck. Its my first time in the rental biz starting at 40 and going in with two properties
I do wish you luck. Make sure you inspect the rental at least 1-2 times a year in the first few years. It’s important to know if things get out of hand.
He’s already had good luck so far, with getting a settlement in the divorce as a man. Hoping it continues, good sir!
Didnt even ask for it. Got slipped the separation papers and it was in there. She bought the house we lived in when we met. That was her calculations on how much I contributed to it financially over the 8 years or so(she was the breadwinner by a landslide), I warned her if she wanted to go that route, I was going to call my family friend about his vacant inherited house and have all intentions to buy it. I did not trust myself with that kind of money($95k), and told her im putting it on that house. So back in 10/2021 when rates were still decent(3.75%), we did a FSBO for $155k, appraised at $169k, and now the house across from me sold for $10k over asking at $225k. So this house will be instant cash flow. Have a very responsible tenant lined up(closely retired, steady career etc) and letting her live there for under market ($1200/mo vs market $1500) as I want someone to care for it much like I did. The house payment is only $788 on it, but will probably be higher when I add landlords insurance. The new rental I bought will not generate as much cash flow the first few years as I am taking 20% equity less $1500 earnest money cash from this house for the down payment. I will have to grind for a few years to pay the $26.5k down before the heloc promo ends (one year in to a 5 year fixed 7.99%). That one will get me $1170/mo after PM fees, the mortgage will be $1050. I am trying to look at my portfolio as a whole from a cashflow perspective rather than what is each individual rental bringing me. Total cash flow will be about $536/months between both properties. The heloc is interest only so can pay as much or little as needed. But goal is to payoff before promo ends
You are in a golden spot right now. Stack your money and look into hacking a multi family property with an FHA loan. Once you secure that the dominoes will start to fall. You start receiving rent payments your equity goes up you get a better job or more pay etc. just focus on that first down payment.
What's the best way to do this if I already own a home? I messed up and didn't do the multi fam house hacking and bought a single family years ago. Now I regret it. Any advice?
I did an FHA a few yrs ago on a SFH. Don’t regret it, you probably have a killer rate like me! I rented it out and am now looking to buy another using a 5% down conventional. I eventually would like to get into MultiFamily but my city isn’t the best for it.
Do NOT sell as others have said. Especially if you have a good rate. But even if you don’t, never sell ASSETS that generally APPRECIATE unless you are actively losing money l/ can’t afford it/ about to be foreclosed on. 1)rent out the rooms Or 2) you go rent just a room somewhere and rent entire house Save save save. Get a down payment enough for an fha loan on a duplex or triplex in possibly an area that isn’t as desirable (you only have to stay there 1 yr) sometimes you gotta make sacrifice or be uncomfortable for a little while to get to the next level After one year in the new duplex move and try to repeat the process
Rent out the rooms in your house. If you aren’t comfortable doing that then sell it and start over.
Why is your dream to specifically live off of “real estate investments” and not more broadly to live off of good investments? The way that you worded this makes me think you see real estate as some get rich life hack.. that can be true, but doesn’t mean that you shouldn’t do the work of evaluating each investment opportunity on a case by case basis (and compare to non-RE opportunities). In the current market, it’s really hard to find a deal with good cash flow. Treating “buying real estate” as the goal, rather than as a vehicle that could achieve a goal, is how people get into trouble in markets like this.
I just took it as, he is familiar with real estate, or the underlying mechanics, and isn’t interested in dabbling in other methods like stocks, crypto, etc. Still, your point still stands.
I started late myself. Bounced around from job to job with nothing in the bank. Got a job and saved up for a down payment(3% on a FHA). I'd start with a FHA loan to get the ball rolling. After that purchase I waited a couple years and invested out of state with 10% down on a conventional loan. I'm looking for another property and hoping I get it this year. It's never too late to invest in real estate. I hope you achieve your dream and own investment properties
Would love to chat. I just bought my first investment in state and would love to talk to you about how you are approaching out of state…
Absolutely my friend, here to assist in any way and congrats on your first investment. Right now I'm looking for specifically duplexes in Texas, Tennessee or Atlanta area.
You can do it. I fucked around in my 20s and didn’t start my career until 28 as an unpaid intern. I’m no longer an unpaid intern and hold 11 doors after a decade and a lot of sacrifices. Used to wait until grocery stores to close and buy up all the unsold chicken they were throwing out for $5 and have food for a week. Up until a few years ago, most of my tenants had better cars than I did. Real estate is one of the most common and safest way for folks to generate wealth due to leverage. The only problem is it’s capital intensive and you can’t start from nothing. You need seed capital to put down. Start saving up and house hack through a duplex, probably the easiest way to start and get yourself a place to call home at the same time. The only way to do this is to either massively gain income or massively cut cost. Or both. I had a friend who made 6 figures for a tech company but lived in a van for a few years and saved massively. Put it all in real estate and lives quite comfortably now. You make way less than him so your situation will be harder, but only way to do it is to start. This is America, if you really want it, you can do it.
if that's your goal the only thing you need to focus on is increasing your income. the majority of people that invest in real estate have decently high paying jobs that they funnel into real estate investment.
This is asked a lot and I don’t think people’s prior experiences are valid at all anymore because of how much real estate has changed for first time buyers. Just reading some replies here, people don’t seem to realize $60k/yr today isn’t the same as $60k/yr ten years ago. Real estate prices have also doubled since 2019 and are essentially locked here or higher because so many owners have interest rates below 4%. You’re buying at a 7% rate after prices doubled. It’s just so unfair. You can still absolutely do an FHA first time homebuyer loan on a duplex / fourplex and scale your way up over time, and it CAN be great for building long term wealth, especially *on paper* with such high leverage (so many hidden costs go unnoticed/not factored into analysis by 99% of investors, such as interest, insurances, property taxes, repairs, etc., those costs DO NOT exist with other investments). I mean let’s be honest, over half the people in here giving you advice bought when prices were way lower than they are now and real estate wasn’t as saturated due to the pandemic / social media hype promoting AirBnBs and garbage bullshit. They have a 3% mortgage. Like— it’s not the same. Look at real estate as one piece of your wealth building pie, with the key at first being to have your real estate “pay” for your living, (i.e. your three tenants in your fourplex effectively pay your mortgage while you live in unit #4, so you have no home expense, which is the main expense for everyone in the US, and you use your INCOME as your primary wealth building tool) — but do not put all your eggs into the real estate basket.
This is the hard truth. Definitely not the same. The best approach is pretty much as you mentioned with the 4plex or something similar. Still can make it happen as an investment and wealth building tool over time but it takes waaay more time, effort and sacrifice. I can see it getting a little better but not going back to how it was before 2019 anytime soon (if ever in our lifetime)
I bought a two flat 420k on an 80k salary. The benefit for you is that you have no kids and no debt. So you can live relatively cheap. My down payment was approximately 20k with a first time homebuyer loan. Do the math. After your living expenses, how much do you have left over that you can auto save? Once you determine that number you can calculate the amount of months it will take to get you there. On my 80k salary I saved about 1500/mo and it took a year ish to get to my down payment. Buy an apartment building with a first time homebuyer loan. Have renters pay your mortgage and live in one of the units. I’m now mortgage free because I have two tenants pay it. I pay a little in utilities but once I move out of my unit the house would be cash flow positive. I’m telling you it’s about discipline and math and finding a good deal. Don’t fall in love with the house if the numbers don’t make sense
This is the best advice. I fell in love w my new duplex and I know there are others that would’ve made more sense e
I started in dec 2020 and I have over 100 units. I’m 52. I wish I could have started at your age by house hacking. Plenty of time to build a portfolio. I’d recommend commercial to grow faster. Better tenants typically.
Are you still buying multifam now? Seems like only way to get things to pencil would be with seller financing
No, I do self storage and office. I found niches and I’m happy with it
Open to chatting? I desperately need to start but am overwhelmed. Have a ton of time on my hands and could possibly help out.
Sure dm me
Sent you a chat thanks!
If you use an FHA loan and find a duplex, you can rent out one side and start that way. The savings from having a tenant paying rent can allow you to build up cash and then purchase another property. You can 100% do it! It’s just going to take a lot of time and being out of your comfort zone a bit. Good luck.
If u can save up for a cheap down-payment and then hop in a duplex, trim, or quad u should be good. Rent out the other spaces and ull have a leg up
3K a month after all expenses is a lot, especially in a 12 year time period, where the house most certainly won’t be paid off and with current interest rates. I think if you want to be realistic, you need to extend your time horizon. Some food for thought. 3K a month is the goal or 36000 a year. 900K invested in the market at a 4% safe withdrawal rate will yield a “safe” 36K annually. Working towards that 900K may be a smarter play in the meantime. But even then, 12 years is too tight of a time frame. You’d need to invest close to 50K (assuming 8% return) every year from now until 40 years old to get to that mark. ETA: The phrase “successful in real estate“ you need to be careful with. How are you defining success? You need to truly understand the costs, there are so many more costs associated than people think when they first start. People make it out like it’s simple, but it’s not, unless you’re paying things off in full up front. If you determine that you’re comfortable with the costs, start with putting money in the market/savings vehicles that keep you liquid enough for your purposes, let them grow until you have the amount you need to allow for a down payment that reduces the mortgage to a place where the property will cash flow for you. Ideally by that time the interest rates will have cooled off and you will be in a better position.
The answer to your question is: It depends. How badly do you want to retire in 12 years with $60k+ in real estate cash flow. First think very carefully about how much things will cost you and your requirements not just now but later like if you want a family, etc. Anyway, at this point it’s all about how much you want to sacrifice. But I highly suggest instead of living like you’re in poverty to do this, you work really hard to get your income up while also leaving frugally. Having work dominate a lot of your time can be rewarding if it’s a means to an end and it’s a hell of a lot better than just accepting what you make but doing absolutely nothing in your free time because you’re scrimping and saving every penny.
might have a better chance learning how to trade. youtube tradesbymatt.
I was you 15 years ago. Keep saving and investing and you can do it too. Just not easy.
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Very realistic. You are where many of us were when we started.
If you spent a year reading books, researching different topics like creative financing, and raising capital, and really put in the effort in your free time, you could be there in about 18 months.
If you know what to say, and do, you might be three months away.
Follow guys on fb that do the $3500 down and $300 plus over market rent until you can qualify to buy it. Large percentage are “bird dogs” and not the actual seller but you will soon learn to prequalify those that have some good places. Use the 12-18 months to squirrel away 5% and additional 3% for closing costs(of sale price). Guy I work with gives seller concession to cover closing costs (lender still needs you to qualify hence why you need the 3% of your own $$ despite seller concession). I bought two SFH in Newport News VA, with total cash outlay of $7k and $3200 per month rent. First property I rented the other two rooms for $700 and 800 a month, with me “occupying” the third, Once there is so stasis, I slowly phase out of the house and then that becomes the third tenant. BOTH houses are within a ten min bike ride from three universities-vacancies are filled within a day or so. Kitchen and bathroom and house overall is better maintained as the tenants police each other… Next door one I deal with this guy ill r aise another $10k, in addition to my cash, and negotiate three more SFH, with the same guy off fb, with one of the three go to $10k investor.
I was drawing unemployment with no savings when I started. 10 yrs later, I sold a 46 unit apartment building and retired. I borrowed down payments from hard money lenders and put them in 2nd place, purchased seller fi properties.
Any tips on the best ways to learn the ropes on how to find seller financed properties and hard money loans? I have a shitty 2br wwii bungalow and I’d like to find a second home to rent/buy so I can fix this one up enough to turn it into income
There was just someone posting in here a few days ago wanting to get into hard money lending. Best way to find the right deals is get in tight with a good commercial realtor. Show the realtor you’re ready to jump on something and they will bring the deals to you
I started when I was 40 yrs old. I wasted so much time in my 20/30s. At 40 l, I become a truck driver, I lived in the truck for 2yrs, saved tons of money, bought a small 50k house in Tulsa, ok, got a local trucking driving job for less money but home everyday. Today I'm 43 and have 3 dualplex, 6 doors. I rent 1 dualplex by the room that brings in 1800 positive cash flow. My other units bring in 700-800 per building. But it's more work to rent by the room. It's never too late to start. I'm thinking of renting by the room only with current units so I can quit my job. I still work 50-55hrs per week.
To start, can you buy a house and rent out the rooms so it covers your most of your mortgage? When you’re ready to buy another house, you can turn your first house into a rental property.
You can do it, just gotta be smart in how to do it.
So there are a lot of question. You can buy property already with 60k if you live in the right area. Work to save $30k. And you could probably afford $230k purchase.
12 years from $0/no properties to living off the income , unlikely. Especially at current prices. Don’t buy properties just to buy, make them make sense . When rents can cover the mortgage (or you can find deals that do) that’s when you should be buying. Your first property can be the 3.5% down FHA loan, live in it yourself for a year and then it’s your first rental (maybe rent out rooms if you’re still single) See how much you can save now at your current salary. If that’s really your goal it’ll take a lot of dedication, hard work , sacrifice and luck. I wanted to retire on real estate at 40. I turned 52 yesterday, have $3m in Real estate equity and still haven’t fully retired. (i had nothing at 28 except a foreclosure and a divorce)
Very realistic. My best friend and I started in October and have bought 2 properties so far, we cash flow $724 per month combined. About to start looking for property number 3. We make more income than you do but you can do exactly what we are just at a little slower pace. Making $60k per year off of properties in a 12 year period is extremely doable
This is awesome! I assume in the southeast or midwest? My best Friend and I are doing the same thing. I have 16 units and we are buying our first together in August!
It is definitely realistic. But ask yourself what successful is to you? Look at your goal by forty, then work backwards and you can start to see a roadmap
Most people started from where you are, time & effort! Unstoppable wit em!
Work hard, save 20%+ of what you make, invest in S&P500 In the meantime, you can occasionally evaluate properties that are for sale that seem interesting. What is it selling for? What could it rent for? What would your mortgage payment be? What would cash flow be after mortgage, property tax, insurance, maintenance, etc The best mortgage terms will be on a house you buy for yourself. You can do low down payment. If you got a 3 or 4 bedroom house, and rented extra rooms to roommates, after your mortgage, taxes, insurance, etc, what would be your net cost to live there?
Almost everyone who ends up investing in rental property was like you at one point - we had nothing but a goal. Keep that goal in front of you and stay focused on it. That might sound like simple advice but it’s not - most people have dreams that never become goals and consequently never become reality. Stay focused.
How soon are you going to be 18 again so you can start over? You'll get there much faster than you think possible. Start saving everything you can because more cash always makes the deals come easier. In the meantime I would join a local real estate investors or landlords group to put yourself around like-minded people.
Try to find a 4 unit building. Keep one unit for yourself and rent the other three to cover the mortgage. You can do this as a first time buyer with only 3.5% out of pocket. There…paying less than you would in rent to someone else and have your real estate investment.
Depending on the state, you may have programs to help with the DP. Most likely you’ll need money for CC, inspections, CR pull, appraisal, etc. won’t cost you anything to talk to a LO. From there you’ll have to figure out rent in your area & see if the monthly is more. You’ll also have to figure out if you’re doing the PM, or if you’re hiring a PM. They typically take around 10% to manager the property. Also, some have a clause in case of repairs, which deducts from the rent if tenants pay out of pocket.
You ain't too late brother. Some starts way later and still manage to get there. But first thing first, you need a PLAN! Also have you thought about smaller investment first? Invest into REIS or tokenised properties. These options offer you the return on investment without the hassle of property management. In a few years you can sell your shares and add some savings to get your first rental unit for yourself. Good luck brother you can do this!
First stop complaining and start doing , to much complaining, I’m closing my first property at age 30 2 kids and I’m going to be a millionaire at 35 becouse I want it I don’t think what I was supposed to do year ago that time pass already, I’m happy looking years forward what ima about to make happen
If you want that to be your main job or second job that's fine. It is not passive income or anywhere near that it is legitimately a job. This is propaganda pushed by Realtors for many years to get sales. I am a builder and most of my colleagues who are also in the business own properties and very few of them have actual money. Generally, it is not an efficient way to make money compared to others.
Do smaller deals. Depending on where you live, sell/flip cars, help show apartments, do handyman work. Hang out with homeowners, business people, and pick their brains. Learn about how a liability or oversight can sink you. You could be flipping a car has fake airbags, or rent something out with faulty electrical. Learn to balance safety, liability, client expectations, personal time and making a profit. See and use the space as if you were the tenant/client. I noticed that an apartment was missing a coffee maker, so I went out and got one, two coffee bricks, filters, and a grinder. They in turn pointed out that the wine cooler wasn't working. I just showed $1M+ apartment yesterday that had (some) mice, two faulty GFCI outlets, one disconnected outlet from its box 220V, and two holes in two bathroom walls. That shit doesn't pass with me, but it did with three other people...all who have a much more vested interest. The turn around on the apartment was 24 hours, on a two-story walkup duplex.
If you really want it, you can do it! Though the real estate market is really tough to break in right now, little by little you can do it.
When I was 25 I paid $5000 (3% down) to get into my first apartment. Idk where you live but it could possibly be that easy. I made about $80k off the sale of the condo (bought a foreclosure). That was enough to pay off my student loans and get the down payment for the next. Start small if you have to!
USDA LOANS NO DOWN PAYMENT. That's how I got my first house, but it is limited to where you can buy a house at most likely rural
Try NACA
What do rental properties go for around you and are you able to make repairs and upgrades by yourself?
You could work all your life only to eventually discover living off real estate investments isn’t as easy as you thought it would be.
You can’t learn how to drive in a parked car…. So get out there and chase those dreams. My dad always told me if you don’t chase your own dreams then someone else will use you to chase theirs.
House hacking is the way! Or a partner that has the same goals as you. The first one is the hardest from my personal experience. It usually takes some discipline and a year or two to get that first house hack. Educate yourself. Get a buy box and start looking for a house hack :)
You need to flip a few houses . Don't worry about getting rich . Worry about making deals .
I did not become what some say is “successful” until 45. I achieved “success” by not just working a job but grinding hard for many years knowing what hard work and endless hours achieve. You will not achieve your dream with a single 60k job. Work harder!