BostonHound

Enterprise BDR

Opinionated

Contributor

Good Citizen

Real Estate Investing

Hey all

Looking at potentially getting involved in real estate investing soon.

Will be debt free within the year with low living costs, is that the smart way to invest?

If so, is the strategy to build up tens of thousands before purchasing property and renting out?

Any advice would be much appreciated, obviously pumping my money into 401k and vanguard stocks but looking for other avenues to start accumulating passive income in my 20's.

🧠 Advice

💸 Investing

💴 Money Management

20 comments

Sort by:

NotCreativeEnough

Big Shot

Professional Day Ruiner

My strategy for investing in real estate has always been to save up for 15% down (that's what my lender's required minimum on investment properties is), then buy something that needs a small amount of work, but not a complete gut and remodel.

Doing it this way allows me to get the property at a slightly discounted rate for a lower mortgage, rent it out to get it cash flowing, then as it increases in value do some minor updates/renovations to pump its value that much more before selling it.

I try to stick with duplex's and triplex's as opposed to single family homes. This lets me still cash flow or at least break even on a property even if one of the units is vacant. I can also renovate one unit while there is a tenant in the other to help cover expenses.

Then wash, rinse, repeat. Each time getting to that 15% gets easier and easier. Any profit you make off the property gets added onto what you're normally saving to compound it and get to that 15% quicker.

I'm also a big fan of buying section 8 homes. Getting a guaranteed check from the government if the Tennant doesn't pay is pretty nice.

BostonHound

Opinionated

Enterprise BDR

Awesome advice appreciate it. You usually targeting long-term renters I assume as opposed to Airbnb type rentals? And general rule of thumb is have the rent higher than the mortgage I assume correct?

NotCreativeEnough

Big Shot

Professional Day Ruiner

yep. Airbnb sounds like a headache to manage imo. I have a friend who has a couple and enjoys it though.

Correct, the rent needs to be higher than the mortgage. I'm not a charity trying to give out free housing lol. General rule of thumb is I find places that I can be at 300-600/month in profit on

CuriousFox

WR Officer

🦊

Hoping the market settles and comes back to Earth.

BostonHound

Opinionated

Enterprise BDR

Amen impossible to jump in right now

TennisandSales

Politicker

Head Of Sales

love it. i love when people want to get into real estate before they turn 30. such a legit option.

being debt free is always a good idea. if you expenses are low, you can move fast and have more flexibility.

find someone to help you that has done exactly what you want to do to avoid rookie mistakes.

BostonHound

Opinionated

Enterprise BDR

Thats the idea for sure, would love to have a steady stream of income flowing in from properties when im in my 30’s. Might have to go the “buy a duplex live in one side rent out other” route.

TennisandSales

Politicker

Head Of Sales

yeah i had a friend do just that for their first property. lived in one side, rented the other out.

then they moved away and rented out the other side. so now they own 1 property that is 2 rental incomes, and own a second home which they live in.

solid start for them for sure.

SADNESSLieutenant

Politicker

Officer of ♥️

401k's blow imo, get enough for 20% down on a 80-100k 1br one bath house, get section 8 vouchers from the state, then rent out that house to someone through section 8 through the state, has a 96% occupancy rate, pays out anywhere from 1200-2200/mo. while your payment is around 400-800, use the equity and rent money to put 20% down on the next place. repeat

SADNESSLieutenant

Politicker

Officer of ♥️

also check out ted cruise on tiktok he has great tips and strategies and a private channel u can join to get started

TheIncarceration

Politicker

SDR Manager

Living in CA and seeing that 1br homes go for 100k where you're located puts tears of pain in my eyes

SADNESSLieutenant

Politicker

Officer of ♥️

You dont have to live in the state you buy a home in, just make sure you buy a good home, have a good property manage, south and north carolina have plenty of homes for 100k

BostonHound

Opinionated

Enterprise BDR

Great stuff appreciate it!

Sunbunny31

Politicker

Sr Sales Executive 🐰

My former landlord gave me a piece of advice I've never been in a position to take advantage of, but here it is, for what it's worth: he started out by buying a duplex, living in half of it and renting out the other half. He leveraged that into his next rental property, and kept growing his empire (hence him becoming my landlord when he bought the property in which I was living at the time). It sounded legitimate, but I had already bought a single family home and was unwilling to do the duplex thing - but that might be a great starting place for someone!

BostonHound

Opinionated

Enterprise BDR

Have heard similar success stories, you end up living for free if the other rental is covering your mortgage: might have to go that route while im still young

antiASKHOLE

Tycoon

Bravado's Resident Asshole

This is definitely above my current aspirations, however, pumped for the no debt part!

BostonHound

Opinionated

Enterprise BDR

Appreciate it! Living lean and should be student loan and car payment free within 10-12 months!

GALACTIC

Politicker

Account Executive

i live in Vancouver BC, prospects of buying a property are pretty bleak

BostonHound

Opinionated

Enterprise BDR

In Massachusetts myself all this is contingent on a market cooldown😅

NoSuperhero

Politicker

BDR LEAD

I wish i was balling enough to do this. In due time tho, in due time

Bravado is a community of trusted sales professionals endorsed by their customers.

Products

The War Room Jobs Salary Guide Tech Sales U

Company

About Us How It Works Blog Bug Bounty

Contact

Press Careers

If you are hired as a contract sales rep by a Bravado customer, we may ask you to prove access to the employee email account provided to you by that customer. This data will be shared with customers to track your sales productivity; customers can use this data to confirm you meet the minimum activity requirements to pay out your ramp stipend and commission.

BostonHound

Real Estate Investing

20 comments

Related posts

Any Real Estate Brokers here?

Any real estate sales magicians in here? 🏠

Selling crypto for real estate????