Baby steps. I got my feet wet by taking on a roommate at my first house for the extra cash flow. Once I had saved up enough for a down payment on a 2nd house, I bought it, moved there, and rented out my first place. If things keep going well I plan invest in a 3rd property by the end of this year.
Some factors that helped out:
1. I live in Texas so buying there is a healthy margin between mortgage payments and rent prices. Insurance prices eat into this margin but once you're renting this becomes and above the line deduction on your taxes.
2. I bought my first house when I was 22 and lived there for 5 years.
3. Luck - my first house was flooded by Hurricane Ike in September 2008. Insurance payout worked out to a free remodeling and a kickstart for the down payment on the 2nd house.
4. I found tenants through assisted housing programs. Put in the work to find people who feel your property is a dream house, then they will want to be long-term tenants. The housing program pays via direct deposit on the first of the month so you never have to chase down money.
5. Maintenance - get friendly with some people who work at home depot and local plumbing and electrical services so you can have a handyman to fix the inevitable problems that crop up.
6. I had a friend who was going to transfer to a college near my 2nd house so he's living with me as a roommate. The deal is win-win - he saves money, time, and vehicle expenses while paying the mortgage for me and then some.
Some factors that helped out:
1. I live in Texas so buying there is a healthy margin between mortgage payments and rent prices. Insurance prices eat into this margin but once you're renting this becomes and above the line deduction on your taxes.
2. I bought my first house when I was 22 and lived there for 5 years.
3. Luck - my first house was flooded by Hurricane Ike in September 2008. Insurance payout worked out to a free remodeling and a kickstart for the down payment on the 2nd house.
4. I found tenants through assisted housing programs. Put in the work to find people who feel your property is a dream house, then they will want to be long-term tenants. The housing program pays via direct deposit on the first of the month so you never have to chase down money.
5. Maintenance - get friendly with some people who work at home depot and local plumbing and electrical services so you can have a handyman to fix the inevitable problems that crop up.
6. I had a friend who was going to transfer to a college near my 2nd house so he's living with me as a roommate. The deal is win-win - he saves money, time, and vehicle expenses while paying the mortgage for me and then some.
Hope that helps!