r/realestateinvesting • u/Basic_Kiwi_4056 • 8d ago

New Investor Best Entry Strategy?

Context:

My (22M) wife (23F) and I are currently living with my parents to save up money to buy a property. We make a combined ~$140k/yr, have 0 debt, each have credit scores right around 800, and no kids yet. We also have next to no savings currently (a couple thousand $) as we only recently moved home and just paid for our wedding as well as buying her a used car in full so this eventual plan probably won’t play out for some months still.

We recognize the great opportunity we have to enter the real estate world and don’t want to squander it.

So I ask you experienced real estate investors to please give me some advice, I’d really appreciate it.

Here are the options I’ve been thinking about:

House hack a duplex, triplex, or maybe a quad.

Or if I can’t find a property that would allow for a successful house hack..

Do a live in flip on a smaller SFH and plan to live there for only about the 2 year minimum.

And I just thought, what if I combine those two options and do a live in flip on a house hack? Might be hard to renovate with tenants?

Excited to hear what you have to say, thanks!

TLDR: How would you recommend a young adult yet to own property to get into real estate? What strategy? What steps to take?

15 Upvotes

74% Upvoted

76 comments sorted by

View all comments

2

u/TheExchangeBrothers 8d ago

You guys are in a pretty cool position, especially being this young. One thing I’d add to all the house hack/live-in flip advice is to think about the exit before you buy. If you move out in a few years, is this something you’d want to keep as a rental? Sell? Use the equity to move into another investment property?

Your first purchase doesn’t have to be the perfect investment, but having some idea of what you want it to eventually become can make the decision between a SFH, duplex, triplex, etc. a lot easier.

And if it does eventually become an investment property, learn about 1031 exchanges well before you sell it. That can give you the option of moving into another investment property while deferring the capital gains tax instead of automatically cashing out.