Hi, I’m new to real estate investing. I currently live in (own) a house with wife and kids so house hacking is off the table. What’s the best way to start out considering I have roughly 50K. I’m reading up to gain knowledge. What would someone suggest? I live in Philadelphia/Atlantic city area. If anyone lives in this area and would like to discuss things. Let me know!
Hey @Sean Carberry I am in the Philly area and would be happy to chat. Like others have said, it depends on your goals/how active you want to be. Turn-key is great, but ROI is generally much smaller than other methods. BRRRR has much higher ROI, but is way more active. There are lot's of other strategies in between. If you are accredited, you can also invest in syndications, but again, lower ROI than some other strategies. Happy to talk through this with you if you would like.
Hey Sean! It really depends what your goals are. That said, I think buying a turnkey property is a great way to get started so you do not have to deal with rehab.
Here’s how to invest 50k in real estate with the least amount of risk: Rental properties!
Listen, no matter who you ask or where you go, you’ll always hear that rental properties are the BEST way to invest 50k for income. If you are investing on your own, 50k is plenty of money to invest, not just in one rental property but maybe even two! You can use the $50k as a down payment for two investment properties that are within the 100-120k price range. It could be a studio apartment, a duplex, a multi-family property, a single-family home or two regular apartments in a building. The best part of real estate investing is that it provides a variety of property types for you to invest in. So, you won’t feel limited to any sort in particular.
50k is a good amount to get started. If you wanted to BRRRR, you could use it as a down payment for hard money to get a rehab done and refinance later. If you aren't comfortable with that, you could look for a deal that doesn't need rehab (or has minimal). The BRRRR method lets you accelerate faster but there is nothing wrong with starting with a move-in ready deal that you can put a renter in.
Hey @Sean Carberry I am in the Philly area and would be happy to chat. Like others have said, it depends on your goals/how active you want to be. Turn-key is great, but ROI is generally much smaller than other methods. BRRRR has much higher ROI, but is way more active. There are lot's of other strategies in between. If you are accredited, you can also invest in syndications, but again, lower ROI than some other strategies. Happy to talk through this with you if you would like.
Start networking, which you are doing here but there are many live Meetups in Philly, I'm go to about 1 a week there, if you looking to go to one message me, I'll tell you which ones are worth attending. Many deals I did I got through some sort of networking.
Like other have said really pin point how much time you have/want to spend in real estate. That will help you decide which path is right for you. There are some amazing opportunities in Philly and in AC (from what Ive heard from a number of folks). Just be realistic with the time you have available and then start learning as much as you can via forums/podcasts/folks on here or in person about that specific niche in that area.
Happy to talk more about Philadelphia via DM if youd like.