Updated 4 days ago on . Most recent reply
First Steps With a Tight Budget
I am new to real estate investing, and I want to move out of Colorado. I bought my parent's house after they died. I owe about 300k on the mortgage, but the property is worth about 615k. I want to buy a rental property, and at the same time, buy a house, so that my dog and cat don't hate my guts. I am looking at NC, TX (maybe College Station/Bryan), or any where that isn't CO. I am overwhelmed as to what to do first. Any advice would be greatly appreciated.
Thank you,
Chris
Most Popular Reply
If your overwhelmed then take a break from this or slow down. Many will say "take action now", as if 1. It's a good time to take action (its not), 2. taking action leads to tangible results when you lack education in the topic of discussion (not true).
You already own 1 house, which is a good thing. I would say, if you don't have 100k invested in an index fund, you should consider doing that or placing the money in bonds. If you did buy today, 60/40 ltv, you'd have something similar to a bond anyways, but a bond is risk-free. Real estate doesn't have alot of upside potential currently, as real estate is 2x more costly than it was 5 years ago in most places. If you have 600k real estate exposure already and are 300-500k net worth, you should build up 50-100k of liquidity somewhere else like stocks/bonds, then consider coming back to real estate.
To be clear, right now is a terrible time to invest, anyone saying anything else is a salesman or someone who has experience that you don't have. Meaning, they have an intricate system where they cold call 100 people a day with callers and low-ball or something else that is more nuanced than what you are capable of doing right now.... As a starter, you are probably looking to do (turnkey, light value-add).
If you want to talk, reach out, I can tell you what you want to know, but I will recommend you invest elsewhere based on what you've provided