Where to start is a very popular, yet personal questions, so I'm glad you are looking for advice about this.
I'm going to take a different approach than most and say you actually need to stop and do some work before you even start the real estate journey. Here are a few considerations you should be looking at even before you start.
1. What are your personal goals? (don't just answer financial freedom, everyone wants that. In reality they generally want something else that financial freedom allows them to do). I suggest asking yourself "why" 5 times to get to the root of the desire to invest. For example: I want to invest in real estate. Why? I want monthly cash flow so I can leave my job. Why? Because I want to spend more time with family? Why? My parents were always home and available to me as a kid, so I want my children to have that same experience. etc etc etc. When you can see a picture of your why, write that down!
2. Think about that real root goal. What does it look like? How much time will you have to spend on other endeavors if you hit that goal. Buying 20 single family homes to be rentals sounds amazing, but only if that is your goal. Personally I'll never own long term rentals, but that's just me. Tried it, hated it, got the tshirt, not going back. In this section you are really trying to think about WHAT you enjoy doing, WHEN do you enjoy doing it, what is your lifestyle going to be when you hit that goal. There is no point in trying to invest as a GP multifamily syndicator if you really don't like the multifamily space, and don't want to sit in on weekly GP calls for asset management updates.
3. Once you have the goal, your time commitments, think about what else you bring to the table rather than money. Believe it or not, money is the easy part. Commitment, consistency and follow through is the hard part. What do you bring to real estate investing? Do you have a construction background? Have you done project management? Are you a structural engineer? Are you good with people? Do you have a brokers license? Do you love working with Excel analyzing data and making graphs? There are a lot of things you COULD bring to the table, but also realize do you enjoy those things and how much time will those things take up in your life.
4. NOW you are ready to explore the options in real estate investing. You can narrow down the buffet of choices pretty easily by eliminating options that purely just don't fit your strengths, goals or time commitment. Don't focus on your limitations and what you can't do right now. Ask your brain how can I do this, instead of shutting down your thought process with a declarative statement of " I can't do this" and then you fill in all the reasons why. Come with an inquisitive open mind, and you will find a way. You will also attract other people that exhibit those qualities, and building that team of people that all have the same goals is amazing! You don't have to go it alone!
If you are willing to explore turnkey companies out of state, then 20-25k should be enough for a downpayment to buy a SFH that cash flows. Let me know if you want to connect
Bruhhh you can take that $25k and get a duplex in the land
Lol I can't argue with you. You are the undisputed king of Cleveland.
Jokes aside, I do agree that 25k can get you a duplex but it might need some work. I just shared my 2 cents because as an out of state investor, I didn't want to deal with contractors on my 1st deal. So just get started and get a feel for the area and then explore all these options.
If you are willing to explore turnkey companies out of state, then 20-25k should be enough for a downpayment to buy a SFH that cash flows. Let me know if you want to connect
Bruhhh you can take that $25k and get a duplex in the land
Lol I can't argue with you. You are the undisputed king of Cleveland.
Jokes aside, I do agree that 25k can get you a duplex but it might need some work. I just shared my 2 cents because as an out of state investor, I didn't want to deal with contractors on my 1st deal. So just get started and get a feel for the area and then explore all these options.
@Randy Griffin- Hi, if you are not preapproved yet, I would say that is a great place to start. Just to see where you land preapproval wise. From there you can explore partnerships opportunities, if you cannot think of anyone that would be interested go to real estate meetups in your area!
I would also find an investor friendly real estate agent!
Hi @Randy Griffin! One thing you might want to consider is doing a lease-option sandwich, which is also known as a wraparound mortgage. Chris Prefontaine has written about this a lot and has a program. He also has a book called Real Estate on Your Terms. This is a helpful guide. I used this strategy on a number of deals over the years. It is a lot of work but it can allow you to get into a rental home or lease option home for almost no money out of pocket.
If you are looking to be completely passive, on the other hand. I recommend checking out Jim Pfeifer's Left Field Investors. They have a lot of passive investment opportunities and wonderful community. Good luck and happy investing!