I am currently an on-site residential property manager and ready to make the switch to investing.
As a novice just starting out, I need to build my team and am ready to go!
Received a windfall. What makes more sense to you? Bear in mind that the windfall is all i have and is only enough for one property. Making the correct first step is crucial!
Purchasing a brand new home, renting that out for monthly income and using the equity to move forward, or... Starting with a flip so I can soley work with cash so make a larger sum out of the starting gate, and not start a loan cycle on a bunch of properties.
Contractor · Scottsdale, AZ · Member since 2010 · 2k+ posts · 3k+ votes
3y
Step 1: Don't do anything. Put that money away somewhere that you aren't tempted to touch it. And spend the next 6 months in research mode. Get educated on the pros and cons to different investing strategies. Study different sub markets. Listen to a bunch of podcasts. Ask tons of questions here on the forums.
Like you said, making the correct first step is crucial. So don't rush it.
Investor · NH · Member since 2023 · 54 posts · 25 votes
3y
It depends how much the windfall was as well as the price point you're looking to buy at. If you have $200,000 to work with then I'd say keep the day job and speak with a bank about financing.
You'll want to keep as much money in reserves as you can. Feel free to reach out if you want to go over the exact numbers and properties you should look at.
Real Estate Agent · Geneva, IL · Member since 2015 · 403 posts · 172 votes
3y
If this is your first property and you do not have a flip team in place that could be a bad combination. Do you know how to run numbers on a flip, figure out the rehab budget and the ARV etc? If not, then maybe a rental would be better. You still need to be able to run numbers to see if the rental will cash flow etc. With inventory extremely low, you need to make sure you know how to run your numbers accurately. Have you explored you financing options? I love discussing this stuff.
Contractor · Scottsdale, AZ · Member since 2010 · 2k+ posts · 3k+ votes
3y
Step 1: Don't do anything. Put that money away somewhere that you aren't tempted to touch it. And spend the next 6 months in research mode. Get educated on the pros and cons to different investing strategies. Study different sub markets. Listen to a bunch of podcasts. Ask tons of questions here on the forums.
Like you said, making the correct first step is crucial. So don't rush it.
Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
3y
i don't feel qualified to give you advice given the limited amount of information we have. but 'starting with a flip to generate more money' isn't generally a good new investor strategy. the best flippers flip as their business.
can you house hack? or do a live-in flip? this lowers your risk somewhat.