4 Easy Steps to Becoming a Real Estate Investor
It’s easier to become a real estate investor than you might think!
With a little bit of knowledge about how the real estate industry works, you can become an investor and set yourself up for financial success without needing hundreds of thousands in savings.
Here’s how you can become a real estate investor in 4 easy steps:
1. Buy a home on the low end of your budget.
Make sure that it’s not a fixer upper that you’ll end up sinking a ton of time and energy into. A move-in ready home is the ticket here. You’ll need to work with your buyer’s agent to negotiate on the home and ensure you get the best deal possible so you can keep your mortgage payment low.
2. Get a home loan that will allow you to put 5% down instead of the traditional 20% down payment.
This will ensure that you don’t sink a ton of cash into the property and instead keep your savings liquid.
3. Rent out a room or two (or an entire level if you have a mother-in-law suite!) to cover your mortgage.
You’ll live in the property too, but your renter will cover the mortgage payment, allowing you to live without a housing cost.
4. Save the money you would have been putting towards your monthly mortgage payment and use it to purchase another home.
It’s critical to put the money you’d be spending on your housing payment into savings rather than spending it. I suggest setting up an automatic transfer into a high-yield savings account so you don’t ever have to worry about spending money you should have saved!
This process is commonly called house hacking because you’re hacking the system by living in your investment property while paying next to nothing in housing costs. Once you have enough saved up for another house, you can rent out the entirety of the first property and make even more of a profit! Want to get started on your real estate investment journey? Contact me and I’ll get you the information you need to get started.
