HELP! - Partner and I have about $40k available for first investment

[Michaela DeJesus]

Me and my partner have about $40k to fund our first deal. Ideally we would like to do it for less if possible. I wouldn't qualify for a traditional mortgage due to not having a traditional w-2 income. Partner is a full time nurse but I wouldn't feel comfortable or right about putting the mortgage solely in her name! Therefore, we are going to go the DSCR route. We also live in NJ where real estate is extremely expensive so we are looking to invest in an out of state market.

If you were us, and had $40k cash to start investing, what would you do with it? Looking for creative and strategic answers only from investors who have been at a similar starting point. Any attractive markets you can recommend? Open to any and every suggestion or piece of advice for what strategy we should use for our first investment.

PS- this is a business partner, not a spouse, so for obvious reasons we aren’t interested in house hacking!

Thank you in advance.

[Syed Ahmed]

Great position to be in with $40k and a willing partner. Going the DSCR route makes sense given your situation. I would look at markets with strong rent to price ratios like parts of the Midwest or Southeast where your cash can stretch further. Think smaller multifamily or turnkey single families in landlord friendly states. Also recommend networking with local boots on the ground teams or property managers early as they can make or break an out of state play