Investing my Money?

Question

I graduated from college about 2 years ago, I currently have a descent paying job, I am living home with my parents for free, I just pay small utility bills and my own car payment., as well as my student loan. I want to begin investing my money wisely. I am not good with saving. What would be a good way to invest whilei am still at home, should I buy a small one family house and rent it out, while I still live with my parent. ( I am not in mutual funds or other type of stocks)

Answer 1

Would you like to be a landlord? I like this but you may not. You need to get repairs done immediately, sometimes in the middle of the night. You need to willing to evict someone that is not paying no matter what their hard luck story is. If all you own is one house then you have 100% occupancy or 100% vacancy- that can be pretty rough.

My brother and I now own 6 rental houses and an office building with five comapanys renting from us. The income is great and we could sell them for a great return.

Answer 2

First of all, GET OUT OF YOUR PARENTS HOUSE!!! They raised you for years and want to be empty Nester's!!!

Seriously, buy your own home and move out. That is the best way to create equity. As a first time buyer you can buy a 2 family home, rent out the other side and fix it up. After a year you can legally move out and rent both side out and go on and buy another 2 or 3 family and do the same thing.

The reason I say this is because you can get a much better mortgage rate (and small almost $0 down payment) if you are and owner occupant, if you try to buy as an investor (not planning to live there) it will cost you about 1-2% more in rate and close to 20% for the downpayment.

After the first year the owner occupant requirement is met and you can do the same thing over and over. As long as you can get a low fixed rate you won't have to refinance which would cause the loan to defualt to an investor status.

I did this several times when I was younger and still own several of the rentals as well as my current residence.

Answer 3

Anyone that invest in anything be it stock, real estate or precious medals. You must be disciplined and develop traits that you need to become a successful investor.

You must also have knowledge about investing in real estate, so I would go to the library or book store and get a few books on landlording.

There are also other real estate investments that you might check out at your local book store. Landlording or owning rental properties is not the only real estate investment available.

One of the disciplines is that you must become an excellent saver for emergencies. When a renter call and indicate a plumbing problem exist you must have the cash on hand to pay the plumber upon his completing the job asked of him.

One of the others indicated a few of the ins and outs of being a landlord. You can hire someone to do these things for you, thus reducing your monthly income to your pockets.

You can do it yourself and get on hand experience as well as save a few bucks in the process. Home Depot and Lowes give free lessons on weekends on how to do certain repairs along with painting, lying tile, small plumbing repairs etc. So if you plan to do these yourself plan on spending a few Saturdays at the classes.

Now as far as the purchase of a single family home for an investment, I would probably start with 1-4 units or 1-2 units. They are treated as single family homes as far as the lending industry is concerned.

If you have a sufficient credit score you could qualify for a 100% mortgage. There are also tax advantages in owning rental properties. (Check with your tax consultant for tax information)

I hope this has been of some use to you, good luck.

"FIGHT ON"

Answer 4

Does your company have a 401k plan? I would definitely become a Home-owner before you become a Landlord!