Tips For Finding Your Ideal Property

Stewarding Your Resources

There are a lot of ways to go about property acquisition. Let’s start from a universally applicable axiom: you get out what you put in.

If you’re haphazard in your choice of permanent residency, don’t be surprised at the ultimate result of your efforts. Meanwhile, if you prepare the requisite time and choose carefully, you can enjoy the fruits of your labor securely and with diminished stress. Here’s how.

With this in mind, as someone between the ages of 18 and 40, it is reasonable to expect you to be able to find employment in the neighborhood of $3,500 a month after taxes.

Whether it takes working at a fast food joint until you’ve become a manager, opening up your own store, starting a landscaping company, working in construction, climbing the ladder at a department store, or what-have-you, provided you are healthy and willing to work, you can get to $3,500 a month within five years.

The key is the will to succeed.



Desirable Ratios


Try to spend a fifth of what you make back due to upgrade; that’s a pretty secure property investment advice. You might have to take out a few loans, but if you’re careful, you could very realistically sustain annual $10k appreciation over five to seven years after expenses.

And this is all on a $2.5k/month salary. In fact, if you’re frugal, you can maintain your residence for $1k a month, or thereabouts. Call it $1.2k to be safe and include an average ballpark figure. That leaves you with $1.3k for discretionary purposes, like food, gas, vehicular maintenance, insurance, etc.

It’s not unreasonable to assume that you could get by with $1,000 in savings should you have no loans from college or anything weighing you down, and a strategically frugal approach toward a perpetual minimization of recurring expenses.

Still, even in the situation of collegiate debt, you could just use any free cash to pay off your college loans, then finish the job when you sell the property and still have a couple hundred thousand to sink into something else.


A Conservative Estimate


If you’re pulling in $3.5k a month, that’s $42k a year. Let’s go even less than that. Let’s assume you’re pulling in $30k a year, but want a fine property.

For reference, $30k a year is $2,500 a month (after taxes). Let’s assume you’re 23 years old.

You get a mortgage—you may need someone to sign on with you; a parent or other more financially sound individual is recommendable. There are many ways to go about this. At any rate, the mortgage you get is on a property worth $200k.

You want it to be zoned such that it can be sublet, and you want to sublet it between four people (yourself included) at the rate of $3,333k/month—all of which goes to the mortgage. To clarify, that’s $833.33 per renter, yourself included.

This means for a thousand bucks per person, you get a run of a full house with full facilities—a backyard, a driveway; the works.

Depending on where you buy, you may have more. If you can room with three others who work digitally from laptops, you can buy some cheap properties with extensive amenities in communities who have experienced housing crises like Detroit.

Within between five and seven years’ time—depending on the interest inhering to your mortgage—you’ll have the $200k property paid off free and clear. Now you can sell it, and flip that money into the home you’ve been looking for.




One thing to be careful of in the subletting process is those who you choose to work with. If you’re subletting your property, you don’t want your renters to act as subletters themselves.

First, figure out your budget, then strategize from there.

Establish a financial baseline for buying your first home and never dip below it. In fact, float yourself above it as much as is possible.

Also, if you want to double down on the value you get through this strategy, you want to  upgrade property value. Install a bar in the basement, put in a hot tub, landscape the backyard, add night lighting and a fence, or take down a fence.

Put in new trees and bushes, ensure the grass is green. Paint the home, fix what’s broken and install new appliances as you can.

Have you considered sustainable energy solutions? These increase property value while saving you money. If you’re savvy about where you purchase—because this will affect what you can sell for—you may be able to add some tenable value to your property.

So refurbish the whole thing and put in $5k worth of solar panels you install yourself. If you’re strategic about the property you buy, where you buy it, how you refurbish it, and who you sublet to, you can turn a $200k property into a $250k to $300k property inside six or seven years.


A Realistic Aspiration


Hypothetically, if you made $2.5k a month, and could budget things tightly enough to afford your regular living as a single individual at around $1.5k a month, you can save $12k a year, or $60k over five years. In seven years, you’re at $84k. If you can upgrade value at $10k a year, you could conceivably come away with $354k in buying power.

If you start this plan at 23, between the ages of 28 and 30 you can be financially free and in full possession of your own home. If you can sustain a job that requires no fixed location, the world is your oyster—and with the internet, that’s an increasing possibility.


About Pepper

I am a single working mom, trying to raise my kid the best way I know how. Join me as I navigate my way through the jungle that is Single Mom-hood, armed with rose-colored glasses and strength of spirit. As pepper adds spice to food, so does my daughter add spice to my life. She makes life no less than…PEPPERRIFIC!

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