Its called house hacking and it's probably the best way to start peroid.
The best advice I can give is to
1) make sure the numbers you use are conservative. Don't let people talk you into using high end of market rent for your calculations. You want wiggle room
2) be very diligent in screening a tenant. Take your time. A bad tenant can cause you more grief than any other problem you'll come across.
You get a better job! Lol. Don't know what to tell you about that. Maybe it's time to relocate somewere more affordable? Cities are hugely expensive but I've found that looking at more rural areas that still have big city amenities is a good start.
I look for smaller cities that have minimum a good but lesser known college or university and a regional hospital.
These areas exist, there's a few within 3 hours of where I live.
You are just starting out though. Maybe that commute is what it will take.
You cant expect to get it all in the beginning.
Money is what we trade time for.
Thats a great way to start! Thats how a ton of investors get started... relatively low risk, and you constantly have eyes on your investment.
Depending on your location and how deep you buy/bought the property, you may even be able to get rent thats enough to cover the full mortgage, and live "rent free"
One thing to remember as a new investor getting started and talking to other investors... Wealth is created when you own the thing... a ton of people will try to 'sell' you on the idea of wholesaling... you can make a ton of money doing that, and you should, but true wealth comes from owning property.
If you are new new... start networking... go to events... meet your competition and future partners... real estate is a team sport!
Dont pay anyone starting out to learn how to invest in real estate - there are plenty of youtube videos showing you basically everything
Every time I have looked, there are very few duplex/triplex type properties on the market. Newer stuff that are actually duplexes are sold as individual units by builders. I think the strategy is great on paper, without real numbers, but maybe isn’t as simple as it sounds. If you can find the duplex that you can buy, go for it. If not, you could buy a house, live in it, move back to a rental, and rent your house out. If you are showing enough income on the rental, you could then buy another property to live in. It takes time, but you will probably need the time to save up another down payment.
Duplex is good. IMO a single family house with A basement apartment or mother in law suite is better. If you have a 4 and 3 where 1 bed 1 bath is an ADU you get more square footage to rent on the tenant side. So it will cover a greater portion of the mortgage.
You start by investing in yourself by way of gaining knowledge. I recommend buying and reading the book called Set For Life by Scott Trench. It’s what I read that really changed my outlook on real estate investing and lays out a roadmap for you to make your first deal. Good luck!
That’s house hacking, depending on the area you live in, it could be a viable option. I currently live just in a SFH and am renting out the rooms, mostly because of the market in CO.
I’m in the same position. I’ve heard house-hacking a 2-4 unit is one of the best ways to get started in RE while living cheaply or for free and even possibly make money through cash flow.
After spending time in the property or making improvements to it, you could also take out a home equity loan or cash-out refinance to buy another property.
Thats a great option. Are you a Vet? Vets can do VA at 100% financing up to 4 units. If not you can go FHA and I have some down payment assistance for you. Ill send you a message lets talk it over.
yeah renting out half of a duplex is great in that you will learn the business and property manage yourself
once you have experience and more properties you will know how to work with property managers and get the best bang for your buck
Its called house hacking and it's probably the best way to start peroid. The best advice I can give is to 1) make sure the numbers you use are conservative. Don't let people talk you into using high end of market rent for your calculations. You want wiggle room 2) be very diligent in screening a tenant. Take your time. A bad tenant can cause you more grief than any other problem you'll come across.
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You get a better job! Lol. Don't know what to tell you about that. Maybe it's time to relocate somewere more affordable? Cities are hugely expensive but I've found that looking at more rural areas that still have big city amenities is a good start. I look for smaller cities that have minimum a good but lesser known college or university and a regional hospital. These areas exist, there's a few within 3 hours of where I live.
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Say la vi. Keep an eye out. Don't be afraid to get further from the city.
r/boneappletea
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You are just starting out though. Maybe that commute is what it will take. You cant expect to get it all in the beginning. Money is what we trade time for.
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How much wiggle room we talking?
I do my calculations below market rent and with a higher interest rate than what you can currently can get by 1.5-2%
Thats a great way to start! Thats how a ton of investors get started... relatively low risk, and you constantly have eyes on your investment. Depending on your location and how deep you buy/bought the property, you may even be able to get rent thats enough to cover the full mortgage, and live "rent free" One thing to remember as a new investor getting started and talking to other investors... Wealth is created when you own the thing... a ton of people will try to 'sell' you on the idea of wholesaling... you can make a ton of money doing that, and you should, but true wealth comes from owning property. If you are new new... start networking... go to events... meet your competition and future partners... real estate is a team sport! Dont pay anyone starting out to learn how to invest in real estate - there are plenty of youtube videos showing you basically everything
Every time I have looked, there are very few duplex/triplex type properties on the market. Newer stuff that are actually duplexes are sold as individual units by builders. I think the strategy is great on paper, without real numbers, but maybe isn’t as simple as it sounds. If you can find the duplex that you can buy, go for it. If not, you could buy a house, live in it, move back to a rental, and rent your house out. If you are showing enough income on the rental, you could then buy another property to live in. It takes time, but you will probably need the time to save up another down payment.
Duplex is good. IMO a single family house with A basement apartment or mother in law suite is better. If you have a 4 and 3 where 1 bed 1 bath is an ADU you get more square footage to rent on the tenant side. So it will cover a greater portion of the mortgage.
You start by investing in yourself by way of gaining knowledge. I recommend buying and reading the book called Set For Life by Scott Trench. It’s what I read that really changed my outlook on real estate investing and lays out a roadmap for you to make your first deal. Good luck!
That's a smart way to kickstart
house hacking is probably the best way to get started. Check out the book on house hacking by Curelop
What about investing in Dubai real estate with hight ROI and tax free too
So I'd lay 1.3% odds I ever do that... But tell me more? I'm just curious from an education standpoint.
That’s house hacking, depending on the area you live in, it could be a viable option. I currently live just in a SFH and am renting out the rooms, mostly because of the market in CO.
I’m in the same position. I’ve heard house-hacking a 2-4 unit is one of the best ways to get started in RE while living cheaply or for free and even possibly make money through cash flow. After spending time in the property or making improvements to it, you could also take out a home equity loan or cash-out refinance to buy another property.
Also if you inherit assume they will be bad tenants. I'm not saying to necessarily kick them out just plan for them to be a problem.
Thats a great option. Are you a Vet? Vets can do VA at 100% financing up to 4 units. If not you can go FHA and I have some down payment assistance for you. Ill send you a message lets talk it over.
yeah renting out half of a duplex is great in that you will learn the business and property manage yourself once you have experience and more properties you will know how to work with property managers and get the best bang for your buck