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.
Start by reading the hundreds of posts in the landlording forum (yes, I'm serious). Be sure to read one of the 50% Rule discussions in the General or Landlording forum. Once you understand the basics of the business, then you'll be closer to getting started.
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?
Learn wholesaling, it provides the necessary foundation of knowledge that you need and allow you to build you dollar reserves..
And then as you make money wholesaling you will come across properties that fit your buy and hold requirements and you put those Into your "retirement fund".
Number one mistake is investors who wait for this to happen, and wait for that to happen, and wake up saying "what happened?".
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.