Advice for Starting Out

[Casey Osborne]

I'm looking to get started in real estate investing and want to start by buying a rental property. I am in the Philly Suburbs where it seems the entry cost for homes are high and don't have strong handyman background to buy a complete rehab. Any advice for getting started?

[Travis Timmons]

I understand why people do not want to do it, but owner occupied strategies are the absolute best way to get started. The best long term investments are the ones that answer the question "Does a person with options want to live here?" The houses and/or neighborhoods that are desirable to you will also be a place where good tenants want to live. Those will perform far better than cheap "cash flow" properties that look great on a spreadsheet.

2-4 unit house hack and live in flips are the two obvious ones, but don't sleep on just buying a house that would be a good rental, living in it until you can save up a down payment for the next one, move out, and now you have a rental. Even if it takes 3-4 years, you're looking at owning 3 properties 10 years from now. It's not sexy, but it is slow and steady wealth building.

Or if you really want to go for it, the single family, get roommates house hack if you do not have a family is a great and inconvenient strategy. 

The 3-10% loan options for an owner occupied house are so much easier than piling up 20-25%, and you'll end up in better quality locations.