Hello everyone! I really appreciate this forum and how it can help educate those who have no idea what they’re doing (me!).
Anyways, a little background. I just got out of school and started a fantastic job down in South FL. I’m renting an apartment now, but something I’ve had in my future plans for at least a couple years now is Real Estate investing. Everyone that I’ve looked up to throughout my years has done some kind of investing, whatever it may be and it just makes sense. Rent does nothing but pay someone else’s loan off, and I would like to be at a place in the future where I have a steady income and assets to my name in case something comes up (medical bills, college tuition, etc).
So, my first question is how do I start and how much money do I need in the bank? My first goal was to buy a place, and put it up for rent right away. When it sells, I can move to the next place, etc etc. Good idea?
I’m not in a position where I want to get into some risky flip or anything, and it seems that this scene is full of “programs” and “get rich quick!” schemes. I just want to do it the old fashioned way but I’d like to hear from some seasoned veterans.
Thanks in advance
Is it a great time to buy in Florida or is it a bad time to buy in Florida?? That is the question? I agree with doing things the old fashioned way. Florida is a risky market in some areas right now. Over the past 19 years here is how I have seen Florida it boomed it crashed then it boomed then it crashed then it held stable for awhile then crashed… If you can weather the storm if it crashes again I love your idea. The number 1 thing to keep in mind is the rental market is great there… So with that being said make sure you run credit and background checks Always a reason why people rent that is for sure. With the way the economy is in Florida also make sure that you are buying right! Look at REO’s (Bank Owned) And get in at the right price. The money is made when you buy and when you sell so if it doesn’t work now it won’t work in the future! If you make a decision with a open heart and solid mind you generally make the right decision. Buy when others are selling and sell when others are buying that is the traditional rule when it comes to good old School Investing. The rates are low right now! BUY BUY BUY!! Oh and sell the Audi your payment is probably too high! JK
Yeah I think I would probably be able to weather the storm. If the rental market is good and I could live there until it rented out, shouldn’t be a problem right? I’m just curious how much I should have in reserve should something go wrong. The rates are definitely low here, and I’ve heard from multiple people now is the time to buy. Just need to do some more research I suppose. My Audi is free and clear but I’ll actually be selling it soon to pursue this as well as a business idea I have. While it’s cool to have a nice car when you’re young (I’m 23) it’ll be cooler when I own a bunch of properties by the time I’m 30.
I did the same thing (Kind of) except I bought 7 houses right out of the gate… I sent you a Private message :biggrin
Well, looks like I’ll be getting into this fairly quickly. I’m going to do the traditional route.
- Find a place
- Get the loan, give myself 30k-40k for repairs/cushion
- Fix it up & rent it!
I am looking to do pretty much the exact same thing in the Sacramento area out west. Are you going FHA or traditional. Cool to see someone my age who is like minded.
Honestly, not sure what the difference would be. I’ve been checking the REOs in the area and found one that caught my eye. Need to do some more research on it. The one thing I’m worried about is the 10-20% down. I’m selling my Audi because I already have a beater and my priorities have shifted so hopefully that can cover it. I thought I might be able to get a 0% down place, but not sure if that will happen
FHA loans require a down payment of only 3.5% vs. the 20% of a traditional loan. The only downside is you have to live in the house for one year prior to renting it out. Not much of a downside if you ask me. I am planning on having a couple of roommates the first year to split the costs and rent it out after the year is up to pay for the mortgage and make a small profit.
go for a duplex or tri-plex you can live in it and rent out the other sides and not have to worry about waiting another year to start your investing journey…