A good starting point?

Question

I have some basic knowledge about the subject. Continue to read and study but it's a lot of information!! Just need to put a plan in motion

Michael Wyatt · Answer

Connect with a realtor, say you want to purchase an investment property.  Have them send you some.  Run comps on them yourself.  Call lenders and ask if this would be something they'd lend on.  Post here and ask questions.  The more reps you get the more you'll learn.

JooYung Choi · Answer

Recommend purchasing a primary residence first, ideally a home that needs work in an appreciating neighborhood. Work on the property / live in the property for at least 2 years. I promise you will have options once you finish renovating.

If you purchased correctly (location & purchase price), you will have enough equity so that you can either sell it for tax free capital gains, cash out refinance (if mortgage rates are lower), or pull a HELOC to acquire your next property!

Lawrence Mitchell · Answer

@Lindsay Davis Hey there hope all is well. So have you ever done a wholesale deal or know of anyone in the Birhmingham area? Again I know I be all over the place.

Lindsay Davis · Answer

@Lawrence Mitchell,

No need to apologize—you’re asking great questions and I’m happy to help! We’ve personally found success with single-families and duplexes across suburbs in western Birmingham—so think neighborhoods like Adamsville, Forestdale, Sylvan Springs, Pleasant Grove, Bessemer, and so on.

As for house hacking itself, I think it’s a good way to get started if you’re strapped for cash and want to lighten your carrying costs a bit. You’ll probably find it difficult to generate positive cash flow with a house hack, though, since you’re owner-occupying a portion of the property.

If you’re super aggressive about maximizing rental revenue, I imagine you could buy a duplex, fully rent out one unit, and then live in the other unit while taking on roommates. At this point, you’d probably be living for free, and may even have some cash flow to boot.

Let me know if you’d like any more details—happy to share what I know!

Lawrence Mitchell · Answer

@Lindsay Davis Hey thanks for the insight. I'm leaning towards house hacking as my first investment property. Are those areas that you mentioned good for this strategy? I apologize, I'm a novice but I'm willing to put in the effort.

Lindsay Davis · Answer

@Lawrence Mitchell,

Great question. I know that you can filter exclusively for multifamily listings on both Redfin and Zillow. If you go to the “Filter” tab on either site and scroll down to “Home Type”, you should be able to uncheck condos and select “Multifamily”. Let me know if this works!

P.S. I also find the “Max HOA” and “Year Built” filters pretty useful, especially since mandatory HOA dues and deferred maintenance can both significantly dent in cash flow.

Lindsay Davis · Answer

@Lawrence Mitchell,

I see that you put down Birmingham as your location. The Magic City is my backyard and, while I may be biased, I think it’s a great place to start. If you’re looking for a good balance between appreciation and cash flow, there’s a lot of opportunity in suburbs to the west, including Adamsville, Forestdale, Pleasant Grove, and the like.

If you’re open to nearby markets as well, Tuscaloosa could also be a fast-growing spot with strong student tenants worth looking into. Let me know if you have any other questions!

Lawrence Mitchell · Answer

@Lindsay Davis thank you so much for that insight. I'm new on my real estate journey and leaning towards house hacking. Ive been struggling finding duplexes, tri, quads online just so I could practice analyzing deals. I have Zillow and Redfin.All my results keep popping up as condos. Do you have a specific strategy that can help me locate these types of properties?

Wale Lawal · Answer

@Lawrence Mitchell

It’s great that you’ve built a basic understanding of real estate investing! The key now is to take action—set a clear goal, choose a strategy (house hacking, rentals, flips, etc.), and start analyzing deals. While continued learning is important, experience is the best teacher, so take that first step.

Good luck!

Lawrence Mitchell · Answer

@Wale Lawal Hey thanks for the insight. Now is the time to take action and I will. In order to find success we have to study failure

A good starting point?

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