Getting into REI

[MisterOwl]

Hey everyone, I'm looking into getting in REI with as little cash as possible. I'm in my 20s and don't make a whole lot, but I've read that doesn't mean it can't be done.

Has anyone done any REI with little cash down? I was looking for a property that has a mother in law suite or section of the house that could be easily rented out, but that's easier said then done. The plan would be to have the rent pay the mortgage and then sell the house and invest in another, or live in that house with 100% equity.

Which brings me to my seconds question, how do you find homes below value/with high equity potential? How does one see the listing price of a home and determine it's really worth 10-40k more than its listing for? I haven't really come across any concise answers.

Thanks mustachians!

[PadAdventure]

Ok, I'll take a stab at this one since there's views but no opinions...

for deals check:  pocket listings (realtor you know), FSBO's, craigslist, tax sales, HUD, homepath, vacant properties, look for distressed/tired landlord properties and research owner in online tax/property search, foreclosures, short sales, spread the word-tell everyone you plan to buy (you never know who might be itching to sell), wholesalers, bandit signs, options for seller financing etc. 

Look up "house hacking" for living in a property you are also renting...check out biggerpockets (is this allowed?)--also some good info there on low and no money deals.

Also, look up your local REIA and find a mentor if you can.  Buy them a beer, or coffee if they're lame.  Just kidding.

[MisterOwl]

Thanks for the reply Pad! I've bookmarked your blog as well.

[forummm]

I kept thinking you were trying to buy some hiking equipment on credit.

[Megma]

Have you considered buying a two bedroom (or more) place and renting out the extra room? Building some equity and going from there?

Personally, whileit's possible to buy with very little down (3.5% for an fha loan if I recall) I think it's not so easy to own with no money saved, you're going to need an emergency fund soon as you'd be responsible for repairs, especially if renting it out. So just because it's possible, it might not be a good idea.

[PadAdventure]

Thanks for the reply Pad! I've bookmarked your blog as well.

thanks!!!!!   Glad to have another along for the ride!!!!! 

[PadAdventure]

I kept thinking you were trying to buy some hiking equipment on credit.

hahahaha....that’s the first thing I think of when i see “REI” as well....