What is the best strategy to get in the RE game with 20k cash in an expensive northern NJ market?!
Good evening BP Community,
I'm looking for advice from other investors on what is the best way to go about beginning a career in REI with about 20,000 in cash. I have access to hard money, private money as well as construction resources. I am in a very expensive and competitive market.
I live in between two major cities in NJ (Newark and Elizabeth) so my township has gone through changes over the years. Right now it seems that it is a place for very hardworking immigrants and first generation Americans who can now afford to move out of the surrounding cities to improve their quality of life. There are some twosies here but they are VERY overpriced. The average single family home ranges from 250-350k. It is a modest, diverse blue collar town. After sitting in on some meetings with county officials and bank execs in my area, I have found out there is an extremely high foreclosure rate here. I would love to acquire some of these homes, flip them and improve the community a bit.
On the other hand, I would love to begin building a multifamily portfolio. I can find relatively cheap homes in places like Elizabeth but market is extremely competitive there and it is somewhat of an exclusive club of investors who have access to the sweetest deals.
So, do I leverage the 20k to acquire a fixer upper to make a quick profit then begin building a portfolio when I can compete for all cash offers or do I keep waiting for the ultimate buy and hold deal to start building?
All responses welcome and thank you in advance!!