Buying real estate

[Anonymous No.1693444]

I want to start buying and renting out real Estate. My issue is I'm only 22 with a part time job so I don't have alot of money. Where can I start though, I feel like getting someone to rent my real estate will be a big step in life and help me out. Also is it possible to buy a small apartment or space to rent out as a good start?

[Anonymous No.1693458]

>>1693444
Where do you live and how much cash have you saved?

[Anonymous No.1693460]

>>1693444

Do research on all the expenses and headaches of being a landlord.

[Anonymous No.1693464]

>>1693444
Dont. Recession happenig soon and real estate is insanely volatile

[Anonymous No.1693465]

>>1693458
Literally only 300 dollars so it won't be for a while. I live in Rhode Island.

>>1693460
No but I will eventually hire someone to do that for me.

[Anonymous No.1693468]

>>1693464
Everyone needs a house tho, ya know

[Anonymous No.1693481]

>>1693444

Buy a fucked up duplex/triplex/four plex that's empty. Move in, fix it up using YouTube tutorials. Rent out the rest of the units. If you have above a 92 IQ it's basically impossible to lose money this way and it will teach you far more about real-estate than anything else. If you end up not liking it, sell and move on with life.

Super critical to buy below market value, cannot repeat that enough.

>t. Landlord fag

[Anonymous No.1693491]

>>1693481
What if you're shit with handiwork?

[Anonymous No.1693494]

>>1693468
Yeah, but what they're willing to pay for one will be cut in half.

[Anonymous No.1693499]

>>1693468
Yea anon, surely nobody will default on their mortgage or skip out on rent :^)

2007-2008 recession was caused by immigrants!

[Anonymous No.1693509]

>>1693491

Then you had better be willing to pay big dollars to get things done. Labor rates go from $20-120/hr (per laborer) depending on what you need done. With stuff like hvac and masonry at the high end. You can cut a $6000 a/c install in half if you do it yourself. Even if you spend 100 hours doing it, it's still worth more per hour than 99% get at their mcwagecuck job.

[Anonymous No.1693530]

Dont buy a place. Your gonna have poor people who are going to refuse to pay and youll have dragged out court sessions to get them evicted.

[Anonymous No.1693555]

I fucking hate RI.

[Anonymous No.1694388]

>>1693555
why's that?
>>1693530
That doesn't happen all the time and if it does I can just kick them out of the house whenever I want

[Anonymous No.1694417]

>>1693444
>22 year old (likely) skill-less worker with no previous experience in real estate who has $300 to his name and shit income

Yeah, you have a long way to go before even considering getting a rental property.

[Anonymous No.1694424]

How well do rental properties scale? Could I theoretically have 50 properties and multiple employees working as landlords for me? Starting from 1 or 2 properties that I buy and fully own and act as a landlord myself

i have around 12k right now, enough for a downpayment on something in the suburbs or a small apartment

[Anonymous No.1694430]

>>1693465
>>1693468
>>1693444
>mfw

Get a mortgage, buy a place, rent it out while still living with your parents.

How do you expect to be able to buy real estate with a part time job though? Pretty pathetic effort.

[Anonymous No.1694566]

>>1693444
Why not just invest in a REIT so you can profit off of stupid yuppies who pay $5000/month for a chick urban loft rental? Unless you are already extremely wealthy or a super handyman, personally owning and managing physical rental properties will be a disaster.

[Anonymous No.1694588]

>>1693460
>>1693464
this

>>1693481
This is how id do it. Charge enough rent to cover the martgage. So you live for free.

[Anonymous No.1694597]

Why will you buy a house now?
Things will go down in flames and you'll be bankrupt.

Now it's the time to sell, grab these millions by the balls

[Anonymous No.1694635]

>>1694430

w-2/1040 2 years + future rental income " adjusted to 75% for underwriting" and 1-3% down. All you need is a lease agreement and your golden. Programs are getting crazy again. instead of minimum 5% + MI for conventional I've seen people get 1% no Mi conventionals.

[Anonymous No.1694642]

>>1694635
Explain

[Anonymous No.1694731]

>>1694566
This.

You can use your $300 and a Robinhood account.

[Anonymous No.1694732]

>>1694388
My mom owned an apartment in a bad part of Chicago. I think it can take 7 months for her to legally evict the tenants. She also had a squatter come and not leavr the builsing's basement. The police were only able to evict the squatter when they found him shitting on the walls, so the basement had no toilet and was not suitable for a person to live in. There was also a few dog fights and tenants would pull copper wire out of the wall and sell it. About half the people paid rent to her. If you get a place that you will rent out and its not in fuckall land, then you should be fine then.

[Anonymous No.1695038]

>>1693444
a lot of people on this board imagine residential when they hear real estate. keep and open mind and look for small office areas, industrial areas, and maybe buy a property with a few tens of thousands of square feet of space. residential rent can be expected at $1 a foot, but manufacturing or office or retail can be $25-30 a foot, and nobody will call you at 3 am to unclog their toilet.

[Anonymous No.1695051]

>>1693444
open a forex account and trade

[Anonymous No.1695092]

>>1693530

Thats if you dont do your home work when screening tenants. Credit score > god.

>>1694417

Not entirely true. You can technically get a USDA 100% mortgage on a small multifamily and get into the game with virtually no down payment.

>>1694424

It can absolutely scale. At some point you transition from being a direct landlord to using property management. When the transition occurs depends entirely on when you are either out of extra time to dedicate or comfortable with the profit hit that comes with hiring. Hiring a good property manager can be tough.

>>1694566

Because RIET's have shit returns, and as usual all the real gains go to the people actually buying and selling the physical properties. Say a REIT as a 7 % annual return, thats all fine and dandy. I've done a realestate deal that actually paid me money during the acquisition and rehab phase, on top of paying out monthly rentals afterwards, so I was actually paid to take the property and have a 22% cap rate annually.

>>1694731

have fun dying a poorfag

>>1694732


Location location location. Never invest in the ghetto unless you are from the ghetto. Working class neighborhoods is where its at, key word *working*.

>>1695038

This is good but not for beginners, as commercial loans have harder terms to meet both upfront and over the duration of the contract.

[Anonymous No.1695342]

>>1695092
Op here, so since you sound like you know what your talking about here, might giving a decent explaination on how to start off in my postion?

[Anonymous No.1695488]

>>1695342

The easiest way is, again, a duplx/triplex/fourplex that you will move into and rent out the additional units. You can get one of these with a residential USDA 100% mortgage. Literally zero money down is possible as long as your credit isnt garbage.

Also, when you buy, remember you are looking for something that is financially ideal, not lifestyle ideal.

biggerpockets website/podcast is a good source for info.

[Anonymous No.1695701]

>>1693465

I went to RI to stay with a buddy for a while and land up there is expensive as fuck. I felt worthless and I've got way more money than you right now. You either need to focus on a career that will earn you way more money within 5 years or look into property in a different state, probably not one where people have been living 400 years.

t. Missourifag with 18k also looking to buy and rent out.