I am confused about how to begin real estate investing, please help!

[weather b0y4]

Hi everyone, this is my first post on these forums!

Here is a little bit about me:

I am 22 years old, graduated college 6 months ago, and I am working at an internship that ends at the end of this month. I do not have much "actual" work experience besides some small work study positions. However, through a combination of luck/skill I made about $100k trading/investing in bitcoins. I also earned a full tuition scholarship, so I do not have any debt. With my bitcoin profits I have a good emergency fund, put some in an s&p 500 index fund, put about $10k into a well-diversified lending club account, and kept a little bit for bitcoin trading/investing.

Like most people my age I would like to move out at some point. I figure that instead of renting, I would much rather just buy a very cheap $40k-$50k apartment for cash rather than paying $800+ per month in rent. I figure that as long as I can find something in this range that is not complete garbage, the high rental prices should keep an apartment originally valued at $40-$50k from falling too much, even in the worst case housing environment. In fact, I may even be willing to spend up to $75k if I can buy something small out-right. However, I would much rather just get a mortgage for a slightly better property with more rooms; perhaps in the $100-$150k range. Then I think I could rent a room to a friend, and have no problem paying the mortgage since I would only put $20-$30k down. In both cases, I would be looking for something small I can live in for 3-5 years, and then keep as a rental when I do get good full time job. I imagine that it will be very hard convincing a bank to loan me $100k-$150k if I do not have solid work history.

My problem right now is finding the full time job - i majored in math + economics, but I am extremely introverted and have to work incredibly hard on my "people" skills, to the point where I get very anxious just submitting an application. (I probably have a little depression too) And besides, I imagine most employers write me off immediately when I mention bitcoin - but it really was my primary means of income during college. I am somebody who, when I am doing something I like, quite literally try to be the best at it in the world ... I do not think I know anyone more competitive than me. But if all I am doing is filing paperwork or entering words into a database, i have no motivation. And I feel that people take advantage of my my low self-esteem and introveted nature, so i am very scared i will take on a full time entry level job and then just get stuck there.

In addition to this my parents think I should immediately set my eyes on buying a duplex or fourplex, which probably cost at least $350k, and much higher for a fourplex. These are out of my price range for now and i do not feel like living at home a few extra years saving up, when I should be out trying to become more social so i can network with people or actually ask someone out on a date (but i digress..)



Anyway, seasoned Mustachians, what do you recommend I do? (And thanks for reading all of that!)

Try to find something super cheap I can buy with all cash?
Try to find something relatively cheap and convince a bank to loan me money without a strong work history?
Stay with my parents for a few years so I can immediately buy something beyond a starter home? (But stay stuck at the emotional level of a 16 year old, with increased probability I resign to a mind-numbing job I hate)

[arebelspy]

[MOD NOTE: I'm moving this from the real estate section, as that's just a tiny fraction of your question, and there are much larger issues which I feel you'd benefit from more responses to. You may want to change the title of the thread as well for more people to read it.]

I'm going to leave the other larger issues for now and just address the real estate question: a fourplex can be a good idea because you can turn it into a profit center: live in one and rent out the other units, and that can pay for your mortgage and then some.  That being said, it doesn't mean it makes sense in your local market.  Some places it's very viable to do this plan, and in other places it doesn't work at all.  You should start investigating your local real estate market and see what, if any, real estate projects are good investments there.

And don't make excuses.  Moving back home doesn't need to stunt your emotional growth, or stick you in a job you wouldn't otherwise take.  At some point you have to take charge and responsibility for your life, whatever else is happening.

Welcome to the forums!

[waltworks]

Poor people skills + first time landlord + using most/all of your savings + unsure about jobs/career?

Holy disaster, batman!

Forget about RE. Rent a cheap apartment if you want to be out of the house (but don't isolate yourself!) - your priority is figuring out some jobs/careers you would be interested in and then going and doing them.

If you're really having a lot of trouble socializing, that is going to make *everything* in life hard - so you may want to do something (counseling? Starting a team sport/activity?) about that ASAP. Social skills can be learned just like anything else and I think you'll find (I speak from personal experience) that it will transform your life to be able to casually socialize without stress.

-W

[lielec11]

If you're really having a lot of trouble socializing, that is going to make *everything* in life hard - so you may want to do something (counseling? Starting a team sport/activity?) about that ASAP. Social skills can be learned just like anything else and I think you'll find (I speak from personal experience) that it will transform your life to be able to casually socialize without stress.

-W

This.

I had friends in college that got 4.0's every semester and could engineer their way in or out of anything problem... except social issues. I was an average student, under a 3.0 (ok maybe less than average ;-) ) but have no problem speaking to people and exuding confidence. I had two or three times as many job offers/opportunities because of this. However you decide to try and correct this issue, it will pay for itself a million times over the course of your life. Good luck.

[Miss Prim]

I'm wondering if you actually have social anxiety issues?  Since you state that you also have depression problems, an anti-depressant could help with both situations.

I suffered for years with social anxiety, but when I went into a deep depression and had to be on an ant-d., it cured my social anxiety.  I was amazed that it worked so well!  I wish I had taken them at age 20!  If you do decide to go that route, see a psychiatrist because they are better trained to know what would work for you. 

As to the landlord thing, don't rush into this without a job first.  I wouldn't tie up all my cash in a house.  You may not like being a landlord and then you would be stuck with a non-liquid asset.

[mozar]

I don't thing you should buy property. 3-5 years is a very short time horizon and you might have to move to another part of the country for work. So rent a cheap apartment. I have found that renting in group houses has helped my social skills. What has helped me with job anxiety is applying and interviewing over and over again. But don't mention bitcoin. Employers don't need to know exactly how you supported yourself in college. Nobody asked me anyway. Well I think I was asked once because they wanted to judge me on whether I paid my own way in college or not.
Apply to jobs all over the country and be patient. The fact that you have cash means you can wait for a high quality job.
Resources:
Ramit Sethi- blog
What color is your parachute- book
Feeling Good- book

ps I've learned to interview pretty well despite being an introvert. Firm handshake, eye contact, don't be afraid to pause and think about your answer, go over your resume beforehand and practice common interview questions. Something that works in your favor is that people often assume quiet people are intelligent.

[Mazzinator]

Seems like i'm the only one, but i say go for it. But make sure you're buying a property as a investment first, then choose to live there second. And although i agree with Walt, only half of me agrees with it. The risk is high (but so is trading/investing in bitcoins..and i bet most people would have told you not to do that either) but now i think you have many things to fall back on. If all else fails, move back home, use your EF, cash out refinance, or use a PM if you can't handle being a landlord (it should be part of your calcs anyways)

I'd buy a 2 bedroom for cash and get a roommate (which will cover most or all of your expenses) If you get a job far away, then you can rent out the entire house.

Study the hell out of biggerpockets.com and read the suggested books in this forum.

Good luck!!!