Thread: questions on beginning multi-family. after graduating

First, I just joined this site from a buddies referral. So far I seen a lot of good conversations and some very informative threads. Great site!

I have been looking into and researching real estate in general, with an emphasis on commercial real estate such as multi-family and self storage. After I graduate in Dec. 2011 from U of Iowa I though it would be a good way to get my foot in the door by searching the real estate market to find and buy a duplex. I would live in one half and rent the other in hopes of paying to mortgage off with the income from my tenant.

I think it will give me a feel of the fundamentals of being a landlord. Plus, a fourplex isn't considered commercial real estate under most conditions to my knowledge. Idk if this can be more lucrative in the sense you may pay lower taxes, permit fees etc. Any thoughts?

2nd, does anybody have any general thoughts or advice about this idea? or even ideas and thoughts about self storage.

Thanks!

Good luck getting a mortgage for investment purposes, especially at 22 with little credit.

Renting rates are skyrocketing. Units that used to cost $400 a month now rent instantly at $600. My old apartment was $920/month now rents for 1,250.

Well not knowing how you will be securing the loan at a young age but assuming you have enough capital it's not a bad idea. But you can not count the rent as income to qualify for the loan unless its already rented I believe. I have a close friend that started the same way upon his graduation and now he owns 4 apartment buildings with 6 to 8 units in each. Good luck.

I got my first property at age 23. I was living with my parents at the time, and got my rental before my own personal house. Doing it this way I was making a positive cash flow and helped secure financing on my second property. I think that SF rentals will be the easiest way to secure financing and buid your credit. Last year after my third property, I moved out at 25. At 26 I now have 5 properties with a value of aroud 600k. I feel as though single family rentals, or a duplex would be your best bet initially. Once I get a little better established I am planning on getting into the commercial side of things. Most likely storage or multifamily complexes.

Where are you planning on purchasing?

Originally Posted by DTS-Photo

Where are you planning on purchasing?

I think thats one of the first things you need to consider beore deciding on what type of real estate to buy.

Originally Posted by DTS-Photo

Where are you planning on purchasing?

Thanks for the advice and sharing stories to those of you who replied! keep it up! I'm searching for a full time job in Denver, Colorado. So I would want to be within the Denver market. I don't have unrealistic expectations and feel it would be at least 2 years until I meet the rigid mortgage loan requirements and build capital to be able to invest in a duplex if I decide to go this route.

That being said, I figured I should really start now by investing time and research into developing a strategy to enter the real estate market.