May 23rd, 2017 – I knew I wanted to invest in real estate after reading all of the investing books I had, but didn’t know where to start. I had just come back from a Fulbright Scholarship where I taught English in a rural Thai middle/high school. I was job searching and decided what better time to get started on my real estate career.
I began an online real estate course and started doing the online modules to get my real estate salesperson license. I knew I didn’t want to be a real estate agent selling residential properties. I was interested in learning about the process for residential and understanding how that translates to commercial.
I now have my real estate license, but am not active. Having this background has been helpful as I start looking for an investment property that I can add to my portfolio. I moved to a new area that I am not as familiar.
I have spent the last 10 months getting acquainted and monitoring the market. Looking at duplex’s that I could live in one side and rent the other. That has been my primary focus. There are some benefits and downsides, but it seems like a good way to start.
Using FHA the barrier to entry is much lower and makes a duplex affordable with the cash I have on hand. If I was looking at single family homes then I would go 5% conventional as it would be roughly the same cash to close as FHA, except PMI automatically falls off after 20% equity. Plus you end up with a slightly lower loan amount and monthly payment.
This is what I am looking to do with my first house hack and am being brought my first off market deal from the broker I’ve been working with for the past 15 months (poor Anabelle!). More updates to come!