How To Buy Your First Property

They are many ways to start you career in real estate, you can start by doing wholesales, become a real estate agent or use you W-2 job 9 to 5 to buy a property and house hacked. Yes, house hacking. If you haven’t heard about house hacking you need to read this post.

House hacking is a real estate strategy, where you buy a house, you live in one of the rooms or unit if the property is a duplex, triplex or quadruplex and rent out the rest of the rooms/units. By doing this you will low at least 30% of your biggest expense. yes, rent is the biggest expense of the majority of Americans. You may be wondering, how can I finance the biggest purchase of my life? Well, you don’t need hundreds of thousands of dollars to purchase your first home and start a real estate side business or main business. You can buy your first property with just as little as 3.5% downpayment with an FHA loan, Federal Housing Administration has a planned that allow first home buyers to buy a house with 3.5% downpayment in almost any market in the USA.

The process is simple, you go to any big bank, a regional bank or credit union, and ask for an official lender to apply for an FHA loan, notice that FHA loans allow single-family homes up to four-unit multifamily. Once you purchase the house you want and rent it out the other rooms/units. You not only will be lower your biggest expense but also you will get the tax benefits of investing in real estate, plus someone else is paying your mortgage and you are building equity in your house. In some cases, you can live for free and even cashflow positive if your rents are higher than the mortgage payment.

This is the start of your financial freedom and building your own wealth. House hacking strategy is so powerful that even the most successful real estate investors had done it, such as Robert Kiyosaki of rich dad poor dad, Gary Keller of the millionaire real estate agent, and Brandon Turner of rental property investing. This is just to mention some of the thousands that had done it included myself.

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