How I Bought a Rental Property at 22 Years Old

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This is the digital nomad quest podcast with Sharon Tseung. teaching people how to build passive income, become financially free and design their best lives.0:14
Hey guys, it’s Sharon from digital nomad0:16
quests. And I have been receiving comments on my video how I made $6,000 a month in passive income. And a lot of the comments I’m getting is how I actually got my property at age 22. So a lot of people are curious about this fact. And the truth of the matter is, the story is not that interesting. It’s not impressive at all, because my parents basically did all the legwork. And I just put in the downpayment, right. But now that I’m older, and I understand the home buying process of rental properties, and I’m even setting for the real estate agent exam, I wanted to make this video on how to buy your first rental property. So I wanted to give you guys basically my story of our home buying process, right? So let’s rewind to 2012. Basically, I had just graduated college, and I was working my first job. But I had actually saved some money because in high school, I taught chess at five different schools. In college, I worked some part time positions, as well as I had summer internships where I was working in marketing and making money that way. So I was able to save some money from those positions as well as my first job. So I had some money that it made me interested in looking for out of state rental properties initially. So I would go on Redfin, during my lunch breaks at work, and I would kind of look at properties in like Nashville in Orlando in Austin, like I was so interested in it. And I still am, right. So it’s crazy how I was interested in in back in like, 2012, I was like, seven years ago, I was already kind of in that mindset of let’s cash flow, right. But anyway, my parents came up to me and was like, Hey, are you interested in getting like a rental property in Antioch? Because they had actually purchase the few there as well. So they’re like, would you want to do it? And I was like, yeah, I’m down. So basically, they figured out the process, and I just put my money into it. And it was under my name. So let me talk about the steps that we went through for the home buying process. But your steps can be different. This is just how we did it. So the first step for us was, you know, I save money. And I made sure I had a position that had a salary. So you know, when you’re getting a loan, they’re going to look at your income and your debt and things like that. So that’s going to be important as well as you need that money for that down payment. Number two, you want to research your neighborhood. So Antioch was a great place for us because Antioch at the time in 2012, was very like undervalued because the crash in 2008, basically screw over these prices, and they were actually cut down by over 60% of the price. So it dropped that much where it was super, like undervalued. And we saw that the prices were coming back up. So we wanted to get in at this good time, and the rents were still good. So when we estimated the rents and the mortgage payments, the rents would have been hire. So we knew that this could cash flow, well. Number three, we got a loan agent, and I got pre approved for qualified amount of money for an offer. So if you want to find a loan agent, that’s going to give you that pre approval letter so that you can put these offers down number four, you want to get a buyer’s agent, and this person is going to help work with you to find a home that you can buy. So for a loan agent and a buyer’s agent, you can probably ask within your circles if they have connections to those that you can like work with. Or you can look online or you can go to meetups and try to find these agents, we were lucky enough that my friend’s mom had an agent contact in Antioch that we could work with because they had been investing in Antioch as well. If you want an agent contact, actually, I am studying for the real estate exam, like I mentioned earlier, so hit me up, I can probably help you out if you live in California. So in our process, we actually tried to offer a different home for me, right, and it failed. But the buyer’s agent came back to us like, hey, there’s another property that you might be interested in, and the buyer actually backed out. So if you want to go put an offer down, so we were down. So the buyer’s agent contacted the seller’s agent of that house and tried to put down an offer. So we succeeded. So obviously, number five is you got to put down the offer. And once it’s accepted, it will take about 30 days for it to close, and you get the property. So I want to add this quick edit. So when we put the down payment for the house, we put both my brothers and my name on the loan because they look for two years of income information. And my brother had that but I had just graduated from college. So I only had a little bit of work experience at the time. So basically what happened was, you know, we split it 5050 Initially, I put 50% in for the downpayment, my brother put in 50%, but actually we transferred it so that it became under my name afterwards. And he just let me pay him back slowly. So he didn’t ask for any interest. He was just helping me out so that I could get the house under my name. So if you have a sibling, that’s super nice and super cool. That’s a huge advantage. Right? So that helped me get that property at the young age of 22. So that’s basically it about our home buying story. So in future videos, I’ll tell you guys more about like the renovations and how to get your property manager and your tenants and things like that and how to kind of do the rest of the buying whole property process. I’ll also probably make more videos about researching your neighborhood and kind of doing the analysis and the numbers of what a cash flowing property may look like.So I hope you guys enjoyed this episode. Please make sure to rate review and subscribe. It really helps our podcast grow. And thanks again. I’ll see you guys in the next one.Transcribed by https://otter.ai