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Hey /biz/, I'm 22 and I'm getting to the point where

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Hey /biz/, I'm 22 and I'm getting to the point where I think I want to buy a house. I don't like renting because I feel like I'm just throwing money away.

So, to get to the point, my plan was to buy a duplex/multi family home and rent out the other parts so I can build equity and make money off the rent, eventually moving out and renting out the whole thing. Basically, the goal is to use someone else's money to pay for my house.

What are the pro's/cons of this, how do I get started, what are things to do/look out for, etc.?

Or is it just better to buy a house? I'm new to this whole thing, so whatever direction is the best I want to take.
>>
build equity to what ends? how are you using the word "equity" here?
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>>1745111

Its a good method, its how I started. Owner occupied multifamily give the opportunity for better financing rates, and even 100% mortgages through the USDA. You generally have to live in the building for at least a year before you can sell or move out though.

Are you handy/capable of following youtube instructions? Google the "BRRRR strategy"
>>
>>1745111
sounds great but you gonna need a lot more money down plus you're a first time landlord and are risking your primary home
>>
>>1745111
https://cdn.kastatic.org/downloads/buyrent.xls

Type in your numbers
Close the thread
>>
>>1745134
Thanks for the advice! I'll have to take a look at that strategy.

>>1745222
Yeah, I have a pretty decent job so I should be able to save up quickly and I understand there are some risks involved. I guess I just need to find a good renter.

>>1745320
Why thank you, looks like owning my home is the best option with that spreadsheet.
>>
All real estate is local. Whenever you post a real estate question, for fucks sake, at least post the country that you live in!
>>
I'm a real estate agent in New York, and I this is the number one question every friend asks me.

Owning real estate, given the mortgage payments don't make you broke, it's always a good investment, land will never not be worth something. Don't think you'll be profiting in a duplex or triplex off the bat. With property tax, utilities and the mortgage. Rent will not cover it, but rents rise and mortgages don't. Another note is rent is income, so it gets taxxed, but mortgages interest is tax deductible so you get that as a perk of buying.

My family invested in a triplex, it payed off, I'd say go for it, if you're looking for fast equity, go for an up and coming neighborhood, idk about where you live, but the LES is growing, Brooklyn Queens Bronx is growing quick, my building in Queens
Went from 900k to 1.4 in the last 10 years. If anyone reading this is looking to buy in NYC, let me know
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>>1745998
Sorry, I live in the united states.

>>1746172
Thanks for the advice! It always seemed like a good plan for me and I have a lot of financial things I need to catch up on. Was living paycheck to paycheck until recently with $10 at the end of every two weeks.

Now I have a better job with some money saved and I want to continue to keep it that way and not go back to living off of peanut butter sandwiches and milk.

To narrow it down further, I live in Pittsburgh which is really being built up now. I know the feds are raising interest rates, but there seems to be a lot of nice areas expanding and I was hoping to live in a nice place and maybe pay less than $1000/month factoring in what I get from rent to pay the bills and what not.
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>>1745111
This is a good way to start out if you have the income/down payment to make the purchase. Like >>1746172 points out, you might not be seeing profits at the beginning, but you'll start to see benefits as you are able to raise rents over time.
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>>1745111
Buy a 4-5 unit apartment building instead

Save a little bit longer for that down payment. Start off ownership right with some passive income help and huge tax benefits for living in the property. Rental income pays for property management
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>>1746172

Hey I'm looking to but in NYC by mid 2018. Budget would be around 330k. Got good credit no debt and using this next year to save to put down at least 15-20% down.

Obviously Manhattan, Queens and Brooklyn are on my radar. I know with the budget I'm looking at studios, maybe 1 BRs but really I'm more concerned about living in a walkable neighborhood with plenty of shops, restaurants, etc. Kinda like an Astoria vibe.
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>>1747359
So going with an apartment complex might be the way to go instead?

I always figured the risk was higher and obviously it would be way more headache legally and what not + maintenance
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>>1745111
Only a good idea if you can get favorable interest rates.
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>>1747371
I'll always regret not going for more.

What can happen? The bank refuses to give you enough? Fine but more units means more people who could pay higher rents under better ownership

Go big or go home
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I know real estate in big cities is really expensive, but I live in a medium sized city with 150K pop. I'm doing the same thing, first time home buyer. Bank said I easily qualified for a $100K loan. Looked at some housing sites and hit the descending button for beds.

>6 beds
>3 baths
>2 car detached garage
>ok area
>$80K

Asked and conventional loan bank said I could do whatever I want for renting it out, even immediately, as long as I live there too.

Cheapest apartment around here is $600 a month. I'll use $500 to entice people since you couldn't get that anywhere in the whole city.

That's $2500 a month. Very enticing.

Hardest part about this is tenants, I know. But just 1 and that pays for the house costs itself, mortgage and utils.
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>>1747449
So you found a house for 80k that you can live in and rent out as well?

Holy hell, I could buy a place like that now. I'm looking at $250k-$300k stuff from the looks of it
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>>1747460
The difference between inside and outside the city is amazing. Just a 20 minute drive. Take your $300K figure and find something close enough to make commuting with a car feasible for the majority of the city but try to have it be outside the city.

At previous shitty jobs I knew people who didn't think anything of an hour long commute, they were coming from over 40 miles away and it took an hour each way. Obviously I'd have a problem with that and attempt to relocate. Reason why I am saying this is because 20 extra minutes isn't any difference to your average tenant and for the same figure you'll get at least 3 more beds.

I was initially only considering $40-60K houses and the most bed/bath I saw were 3/2. But just $20K more and that number jumps to 6/3.
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>>1746172
>owning real estate is always a good investment.
Uh, no. Not when darkies start moving into the area.
>Land will always be worth something.
Usually, but it won't always be worth what you paid for it. And sometimes it really does become worthless when the tax becomes higher than what anyone would want to pay. It happens, especially with land that doesn't have a house or building on it. Some land has no access or access gets cut off, and becomes worthless. Some land gets swallowed by the sea, and some falls off a cliff.

I've seen a parcel along a county road purchased by a guy because it was cheap. Unfortunately there is literally nothing he can do with it. It's 30 feet deep by 700 feet long and the county qon't let him do anything. He can not put up a garage, not graze livestock, not park his car, nothing. But he has to mow it and control the weeds or get fined, and pay $1000 a year in tax. Whatever he payed for it, at this point he would have to pay to get rid of it.
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