Where do I start with investing in real estate?
I am 20 years old, living in maryland, and I am looking to start investing in real estate (flipping homes, renting properties, looking outside of Annapolis and Baltimore). Where do I begin? I have 2 friends that are looking to go in on this with me and we have been discussing how to get this going. I am currently in the service and I have heard good things about VA loans so I am hoping this helps us get started with our smaller budget and combined income. What should we know? What would our initial and first year costs be, for example, on a $100,000, move-in ready home? We would be managing it ourselves so we aren’t factoring in paying a property manager. Any guidance is greatly appreciated.
- BLv 78 months ago
flipping homes is effective in many high turnover areas, unfortunately Maryland is very expensive in the big city high turnover areas.
first, recognize which areas to target, ensure that the volume and turnover of available properties is not too high, for example pick a neighborhood in the suburbs
second, on paper, write down the possible requirements which may take cash to handle: wallboard, plumbing fixtures, lighting, etc, and in the next column next to each one, who might handle that install, final column estimate of cost to do and timing.
finally, once you have saved up enough cash to purchase a place (you will need some seed money to get a place), talk to a bank together to see what kind of loans are available to you
It could be worthy of your time, but it is not a slam dunk. You may need seed money and a steady job on the side to prove to the bank you could pay off the loan.
- RamiroLv 58 months ago
Try something small first like building a small room outside of your house and then rent it. I own an hotel with my dad now.
- 8 months ago
Start somewhere with cheaper homes. MD is expensive the Annapolis area even more so.
- Jaimee GrubbsLv 48 months ago
try your luck at getting laid first young fella
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- Anonymous8 months ago
First save cash in a basic savings , SO get a job live in a rat hole
wait for the market to crash so you can by low cash
do not borrow money at all.... you cannot borrow and invest it does not work
flippers is a bad idea ---- rentals are good if done right
do not buy houses buy duplexes and triplexes (no more than 5 units in a complex for legal reasons)
buy one pay cash ,, save money buy the next one
there is no get rich fast trick
if you borrow money you will loose it all at some point
and do not have partners at all ever
and use a property management company ,,, do not manage them, your self
- 8 months ago
The neighborhood is a good start
- 8 months ago
IF you are voting DEMOCRIT.. DO NOT BUY anything or have kids as the WORLD will cease ti exist in about 11 or 12 years. Your Real Estate will become SOCIALIST PROPERTY and you will be PAYING FOR SOCIALISED MEDICINE FOR EVERYONE and HIGHER TAXES so you cannot afford it anyway.
You can only purchase threw the VA if you plan on living in it or your immediate family lives in it. YOU cannot use the VA as a supplier for purchasing real estate for flipping purposes.
- Casey YLv 78 months ago
VA wont permit three unrelated individuals and they don't give loans on investment property...so don't bother with that route.
Are you going to flip or rent? Do you understand carrying costs and how that affects your flip?
- realtor.sailorLv 78 months ago
The biggest mistake rookie flippers make is not knowing the market. They buy a house for $X, spend $Y fixing it up only to find it's not worth $X + $Y + profit. Find a good Realtor that can guide you through it.
- linkus86Lv 78 months ago
The place to start is buying a house for you and your family to live in first. Once you have accomplished that comfortably, then you can consider buying property to rent or flip. You need to get on the real estate ladder yourself before you can become an investor.