Ready to turn 10K into rental properties

WI · Member since 2023 · 74 posts · 24 votes

I am just starting out new in my rental property venture. I have a buyout coming from my house of $13K. I need to find someone to learn how to turn that into 1 hopefully 2 rental properties. I have done property management and a veteran of the Navy. It is time to get my money working for me and growing. I can navigate Rock County and Walworth County the easiest. Love a commercial building and even find investor to fund remodel if I can get the building. Thoughts on any best way for any kind of properties?

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Theresa HarrisPro Member

Member since 2019 · 15k+ posts · 11k+ votes

Start by talking to a bank to find out how much you qualify to borrow. For rental properties, you are going to need 20% down, so $10K is unlikely to be enough in most areas.

As for what to buy-you mentioned selling your house-where are you going to live now? If you haven't bought a place, why not look at a duplex or a place with a legal suite where you can live in one part of the property and rent the other part?

Look for a good place-somewhere you'd feel safe living. Don't buy the cheapest place as on paper it may look great, but in reality you will have higher turnover, lower quality of tenants and more problems-plus it won't appreciate in value as much.

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Theresa HarrisPro Member
Member since 2019 · 15k+ posts · 11k+ votes
1y
Start by talking to a bank to find out how much you qualify to borrow. For rental properties, you are going to need 20% down, so $10K is unlikely to be enough in most areas.
As for what to buy-you mentioned selling your house-where are you going to live now? If you haven't bought a place, why not look at a duplex or a place with a legal suite where you can live in one part of the property and rent the other part?
Look for a good place-somewhere you'd feel safe living. Don't buy the cheapest place as on paper it may look great, but in reality you will have higher turnover, lower quality of tenants and more problems-plus it won't appreciate in value as much.
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- Duane A. Snow
  OP
  WI · Member since 2023 · 74 posts · 24 votes
  1y
  Quote from @Theresa Harris:
  
  Start by talking to a bank to find out how much you qualify to borrow. For rental properties, you are going to need 20% down, so $10K is unlikely to be enough in most areas.
  As for what to buy-you mentioned selling your house-where are you going to live now? If you haven't bought a place, why not look at a duplex or a place with a legal suite where you can live in one part of the property and rent the other part?
  Look for a good place-somewhere you'd feel safe living. Don't buy the cheapest place as on paper it may look great, but in reality you will have higher turnover, lower quality of tenants and more problems-plus it won't appreciate in value as much.
  
  Thank you. I thought about buying a place i could eventually move into. My ex is keeping the house. I am getting $13k from her as a buyout. So the best i can make that work for me would be great. I am in a 3 bed apartment for $400 a month to be onsite manager.
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Becca F.
Rental Property Investor · San Francisco Bay Area · Member since 2022 · 1k+ posts · 1k+ votes
1y
I agree with Theresa's comment that $10k isn't enough to buy any properties and to me that would be risky to partner with someone with that amount. You don't mention any additional cash reserves, not to be too nosy about your personal finances.
I would work on increasing income. The $400 rent is very reasonable. Do you have a high paying (or at least decent paying) W2 job in addition to being an onsite manager for the apartment complex? I think being a Navy veteran also puts you in a good position with getting a VA loan in the future.
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Drew SygitBusiness Member
Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
1y
The only way to really invest with $10k is to buy a 2-4 family to live in. You can put 3.5% down on an FHA or 0% down if you're VA eligible.
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