I will preface this by saying that I am new and inexperienced in all aspects of RE. I was lucky enough to find this forum, and am grateful for all the knowledge I have picked up while browsing.
First, i am a 20 year old recently separated veteran. I have 11k saved with the intention of investing it. I know that this may not be much, but is 10x more than a lot of you started with, for which i am also grateful. I would eventually like to support my self investing/LL/rehabbing, etc. I understand this is a VERY broad question, but what’s next? (if you were in my shoes)
My base plan, which is no where near ready to execute, is to find a deal on a duplex that needs some rehab work, live in it for two years while attending school and renting out the other unit, and then moving on from there. There are still months of research ahead of me, but after all of my teen years and years in the military, I have finally found a possible ‘career path’ that interests me.
Any information or advice on anything real estate related you can give me will be greatly appreciated.
Cory, welcome aboard and best wishes with your new venture.
You have an $11K bankroll which, while not a king’s ransom is still a sizeable amount to begin with. A heck of a lot more than I had when I started. My point being you need to protect your capital and spend it right out of the box.
You ask what next? I started with lease options and suggest you look at this strategy as a way of beginning yourself. It will allow you to keep your money where it belongs, in your pocket.
They don’t require much in the way of start up capital, they’re relatively easy to understand, and you can raise some fast cash by assigning your deals. That’s my .02 :cool
Since you are going to be paying for a roof over your head, let it be YOUR roof. Great plan with the duplex, now you move into the ugly side and fix it up while you live there.
Keep us informed of how you are going to find and evaluate this duplex. You will get lots of helpful advice.
Furnishedowner,
The duplex plan came out of left field, and as of right now I wouldnt know where to begin to search for real deals. Although a duplex is ideal, a rehab house might be easier to come across.
Furnishedowner,
The duplex plan came out of left field, and as of right now I wouldnt know where to begin to search for real deals. Although a duplex is ideal, a rehab house might be easier to come across.
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Easier? stay away from easier. Nothing is going to be easy.
Now since your a veteran that means you have access to a VA loan. Check it out.
A duplex you can live in, rehab and rent almost all at the same time while going to school. That sounds like it might work if the deal is right. I would go the duplex route as long as its not too heavy on the rehab side.
Your first time does not have to make you an instant sucess as long as you make some money the learing experience will be worth it. Keep reading the forum there are tons of golden nuggets just sitting here in plain sight.
good luck
Easier? stay away from easier. Nothing is going to be easy.
Now since your a veteran that means you have access to a VA loan. Check it out.
A duplex you can live in, rehab and rent almost all at the same time while going to school. That sounds like it might work if the deal is right. I would go the duplex route as long as its not too heavy on the rehab side.
Your first time does not have to make you an instant sucess as long as you make some money the learing experience will be worth it. Keep reading the forum there are tons of golden nuggets just sitting here in plain sight.
good luck
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I guess easy was a poor word choice. I meant, more likely to come across or find in my area. I just don’t think I would be as likely to get a call from a bandit sign or yellow letter from someone who wants to get a duplex off their hands compared to a house.
AJ290,
Thank you, I was browsing his forum all night. I ordered a couple books off amazon for a bit cheaper than the manual just to get somewhat of an understanding before I spend $100 getting his manual. If anyone is selling a used copy, I will gladly take it off their hands.
As of right now, im a bit skeptical about dropping $100 even if it really is the holy grail, just because I don’t want to fall into the ‘trap’ that seems to be common with a lot of the online gurus until I research more and find out who’s who. The forms that come with it make it very appealing at a later time though.
A duplex fixer upper is a great idea. Something to consider though is ugly houses are hard to finance unless you use all cash. Another option maybe to find a deal that cash flows really well and use your cash as a down payment on a loan. Banks and distressed sellers want cash, especially for properties in need of rehabs.
The duplex is a great idea. Exactly what I have done.
It also looks good on a resume and is a good conversation piece when talking with prospective companies and other business professionals. I m a senior in college and my duplex has impressed enough to get me 2 internships, which in turn has given me some very good leads on job prospects as I near graduation. With your military experience, a duplex, and good grades… look-out, your gonna be a prime candidate in employers eyes!
Purchased a rundown duplex, rehabbed, used the gained equity as collateral for the conventional loan. Mortgage, taxes, etc are covered by the rent I get from the opposite side, and I couldn’t have rented an apartment as nice and big as my side of the duplex.
Hi, I’m a newbie in real estate too, and I would like to ask what’s the best way to assess the value of an income-generating property such as apartments? I ask in case an investor would ask me to assess if a property is worth buying or not. If you could point me to a resource that would explain it in detail and in layman’s terms please? Thanks very much!
Glad to see you got some books off Amazon to start; too many people start with courses when you get a great education with books from your local bookstore, online booksellers and your local library. Please don’t overlook the massive value of your local library for a ton of books and audio books. It is one of my favorite places.
Your idea of buying a duplex could be a good solution for you. My father, who has been investing since the 1970s like duplexes and triplexes. Personally, not my favorite as I prefer single family homes, but I do see the appeal.
I did answer a post earlier today about strategies for getting started that I think you’d get some benefit from and rather than just copy and paste it here, you can see it here:
If you have any questions or if I can help in any way, please do let me know.
P.S. manilenio… you will want to start off by doing a Net Operating Income calculation. There are some great resources on this forum on how to do that or you can also find several books in your library or bookstore that will also go over that for you.
If you can’t find one or need help with it, just let me know.