BiggerPockets

Have a 10+ year job w/ a pretty good salary, good credit, but am lacking capital (5k in cash and about 50k in a 401k). Have been wanting to start accumulating low-cost properties (50-75k) that can be paid off within 10-15 years, but am wondering if I should wait to build up more cash for down payments, repairs, vacancies, etc.

If I were to start now would owner-financed/land sale homes be an okay option to start? Saw some that have small down payments and low monthly payments.

Really don't know where/when/how to start. Appreciate any feedback. Thanks.

Thanks Mike. I've reviewed the 50-2 guidelines and seen your comments about looking for properties with 30% or more equity built-in. Interesting data and really forces you to look for sensible deals.

Had seen some other posts that recommended 6-12 months in reserves (separate from initial rehab and ongoing maintenance). Is this in addition to the 50-2 guidelines?

Jeff:

I definitely agree with the wholesaling or "birddogging" concept. Let me show you how fast you can change your picture.

1) Do a couple of wholesale deals to generate some cash;

2) Maybe then pick up a longer term property or 2 for yourself;

3) Find a local, well healed partner who now likes what you are doing and realizes that you are now experienced, and you now a lot of capital to rock & roll.