Though some young people are not looking to invest just yet, some may just be ready. There are ten top mistakes, according to Brandon Turner of Bigger Pockets, that those still in their twenties make when it comes to investing in real estate. The first is staying at home too long. He points out that if you are doing this to pay off debt and save money, that's great, but if it's so that you aren't required to work the hours needed for your own place, it may be time to do some growing up. Secondly, don't forget that research did not end with school. If you're looking to invest, either for yourself or to rent the property out, then make sure you do your homework. Thirdly, don't get caught up in the cliche. Real estate investment is not just for one group of people. Fourth on the list is to think ahead. Buying a one bedroom condo may be great when you're young, but the future might bring more than that. The fifth is a warning to the degree that when you go from one income to two, it can be tempting to max out your debt. You may not be overspending the two incomes, but, just like the last one, think about the future. There may not always be two incomes to pull from. Number six is a reminder that while price is always important, it is not everything. You can get a low price for a place in one neighborhood, but it may not be safe. Make sure you take everything into account. Pay close attention to interest rates as well, making sure that you know what they're doing in your area. The eighth note on the list is a reminder that if you're young, single, and own a home: don't be afraid to rent out rooms. It can be a great learning experience as a landlord and bring in extra cash as well. Turner reminds the reader that time is one of the most important parts of investing and that starting young can help you build the knowledge you need. Lastly, don't get caught up in the idea of a single-family home investment. Multifamily homes such as small apartment complexes can be a great place to invest.
Comprehensive credit & criminal screening.
Get access to bankruptcies, employment history, medical records, past addresses, evictions and more.
State-specific legal forms.
Lease agreements, rental applications, lease termination, eviction forms and much more.
Our paid membership plans now include free tenant screenings! Greater access to all of our features and the membership pays for itself!
© Copyright 2019 LandlordStation LLC