Skip to main content

Plan for next 2-3 years advice and recommendation for it

I’m 23M, and while life is good, I want to stop messing around and start building a future for myself and my future family. So that's why I’ve developed a plan for the next couple of years and would love your advice or insights, especially since I have no idea what Im doing. Anything helps honestly I want you all to be as honest as possible I really want to do this right.

My Situation:

  • Income: Recently started a job paying $70,000/year.
  • Credit Score: Currently 707, aiming to improve it over the next two years.
  • Living Situation: Staying with supportive parents, which allows me to save money.
  • Savings: After covering expenses, I can save $3,000–$4,000/month, giving me hopefully $60,000 or more but 50-60k is the minimum in two years.

The Plan:

  1. Save Aggressively: Save at least $60,000 for a down payment and related expenses.
  2. Buy a Duplex:
    • Location: Plan to invest in Texas due to affordable prices. I don't live in Texas nor do I plan on living there, I just want to buy the property there.
    • Budget: $150k–$300k. Aiming for $250k, a 16% down payment is what Im aiming for which would be around 40ish K for 250k. All these prices are ideal in my opinion.
    • Mortgage: Expecting monthly payments would be around $1,700–$2,000. Also Ideal for me.
  3. Rental Income: I don't plan in living in the duplex the plan is to rent both units out and for the the rent from both tenants to cover the mortgage on the property. My goal is for the property to break even or generate slight profit.
  4. Emergency Fund: After I've completed the purchase of the property I hope to have around $20,000 aside for unexpected costs.
  5. Repeat: After I buy the first property the plan would be to keep living with my parents and save up for another year and repeat the process until I have 3-4 properties to my portfolio.

Key Assumptions & Challenges:

  • Rental Market: Unsure how much I can charge for rent or how much I have to put down on the down payments—relied on estimates from Zillow and other research for that info
  • Parent Support: Staying with my parents is critical to save money and I have a great relationship with them and don't plan on it changing, but I know circumstances might change.
  • Long-Term Goal: Build a solid foundation for financial independence and passive income through real estate.

I hope this is clear and easy to follow. I understand some of you might think this plan is a bit optimistic, but I genuinely believe it’s achievable, and having a solid plan for the next couple of years is a strong starting point.

I’d love any advice or insights, especially on potential challenges I might face. Please feel free to be as honest as possible—whether it’s about the feasibility of investing in Texas versus another state, or any tips for a beginner in real estate. Any feedback would be greatly appreciated!

submitted by /u/Zestyclose_West_5075
[link] [comments]

source https://www.reddit.com/r/RealEstate/comments/1gynf9w/plan_for_next_23_years_advice_and_recommendation/
Labels:

Comments

Post a Comment

Popular posts from this blog

North Carolina – “One to Buy; Two to Sell”

I realize I will likely have to contact a real estate attorney but also hoping to hear insights and experiences from others! I have a house in NC that I bought by myself in 2009, and paid off, in full, in 2022. I got married in 2023. My spouse and I have not lived in the house as our "marital residence". We have maintained separate residences even after we got married. (That a separate topic!). I am now selling this house. Realtors have told us that my husband has to sign the deed at time of transfer but I am not convinced since the house has not been our marital residence. The realtors like to use the phrase "one to buy; two to sell", which seems like a broad-stroke statement which is not applicable under all circumstances. And of course, the realtors don’t realize the details of my specific circumstances: I purchased and paid for the house in full prior to marriage Only my name is on the deed And most importantly, we have never lived in the house as a marit...
Post a Comment
Read more

Question With Tricon "Pending ID".....

My wife and i, along with 2 other peopl applied to rent a house, and our application says "Approved, Pending ID". Anyone else know what that means? Do we pretty much have the place or are we missing something? submitted by /u/Itskrueger [link] [comments] source https://www.reddit.com/r/RealEstate/comments/1orixqj/question_with_tricon_pending_id/
Post a Comment
Read more

Aren't comps/CMAs useless with buyer credits at close happening now?

I'm looking into buying a new construction townhouse in my HCOL US city. I'm seeing builders offering interest rate buydowns worth $20k-$60k on $800k homes (rather than just lowering prices) in order to keep their comps high for their other units, now that buyer demand has been declining. I asked my agent about these, and he said these buydowns aren't even the full story: buyers can write all kinds of other credits into an offer, like their closing costs, prepaid sewer fees, etc. Apparently cash buyers can just write in a "buyer credit at close" for any amount in their offer. So a new townhouse that appeared to sell for $800k in the MLS might have actually been a cash offer with a $100k+ buyer credit at close, meaning the buyer only spent $700k or less in total, but to the rest of the world they can only see the $800k! So that made me realize I can't trust comps/CMAs for other new construction townhouses. The sales prices could be way lower than they appear...
1 comment
Read more