Getting into Real Estate Investing

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Getting into real estate investing - Financial Glass

Getting into real estate investing seemed a natural course for me. Since I was in high school I knew I wanted to invest in real estate after reading Rich Dad Poor Dad. Yet, I 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. Having just come back from overseas, I was job searching and decided what better time to get started on my real estate career.

Getting My Real Estate for Investing Purposes

Naturally, I got started with 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. Yet, it was helpful to learn the process of buying and selling residential real estate and how that translates to investing.

I now have my real estate license for Alabama (and Florida!). 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 with.

Since then, I have spent the last 10 months getting acquainted and monitoring the market in Fort Myers, FL. 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 great market to get started investing in real estate.

Using an FHA loan, the barrier to entry is much lower. Thus making a duplex affordable with the cash I have on hand. If I were to buy a single-family home then I would use a 5% conventional. The reason is it would be roughly the same cash to close as a 3.5% down FHA. The benefit of a commercial loan is the mortgage insurance (PMI) automatically falls off after 22% equity. Plus you end up with a slightly lower loan amount and monthly payment.

Finally, I am hopefully getting into my first real estate investment as a house hack. It would be my first off-market deal from the broker I’ve been working with for the past 15 months (poor Anabelle!). More updates to come on hopefully getting my first real estate investment soon!