Seeking advice for first-timer

[Graham Kim]

Hi folks, finally decided to get serious about investing so appreciative of a forum like this. I'm soaking up as much as possible, but wanted to get your perspectives for a first-timer also knowing that I'll learn a ton with my first. I'm leaning towards purchasing a single-family/duplex (<$200K). Should I look into a:

- Move-in ready unit
- Unit that needs cosmetic rehab
- Unit that needs significant work

Fully aware that with my budget, there may only be units that fit the bottom two criteria, but is that too much to bite off (esp. the third option) for a first-timer? Appreciate any advice if you were in my shoes and had to do it over!

[Melissa Justice]

@Graham Kim,

Hey! If I were in your shoes starting out, I’d lean toward a move-in ready or light cosmetic rehab property for your first deal. A major renovation (structural work, full systems replacements, etc.) can quickly eat up your budget, delay your first rent check, and be overwhelming without experience or a strong contractor network in place.

With a $200K budget, you can absolutely find cash-flowing single-family rentals or duplexes in solid rental markets that don’t require major rehab. Some great long-term buy-and-hold markets to consider:

Memphis, TN – Strong rental demand, affordable entry prices, and historically resilient to market swings.

Griffin & Forest Park, GA (outside Atlanta) – Lower acquisition costs than Atlanta proper, but still benefit from the metro’s job growth and population inflow.

Akron & Canton, OH – Affordable purchase prices with solid rent-to-price ratios, strong working-class tenant base.

Birmingham, AL – Diverse economy, affordable housing, and stable long-term rent growth.

The goal with your first property should be to keep it as predictable as possible - you want your learning curve to be about tenant management, property management, and cash flow tracking… not about juggling contractor bids and building permits.

Long term, you can always graduate into heavier rehab or BRRRR strategies, but for now, think turnkey or near-turnkey to build confidence and steady cash flow from the start.

Always happy to break down current deal examples in those markets so you can compare rent-to-price ratios and ROI side by side before making a decision.

Best of luck!