New and stuck in analysis, looking for advice for how to start
Member since 2021 · 2 posts · 11 votes
New and stuck in analysis, looking for advice for how to start
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Nicholas L.Pro Member
Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ voteshello. I have good news and bad news for you. The bad news is that the market is genuinely terrible for new investors right now. That doesn't mean you should give up, it just means you should be cautious.
and the good news is that you don't have 'analysis paralysis.' that's a made up condition by the people selling the things to get you to buy the things. because they make money even if you buy a bad deal. and so, there's no reason to buy before you're ready.
(can you house hack? if you already have a primary residence, or your lifestyle doesn't permit it, that's fine. but i always have to ask because house hacking is such a great way to get started.)
OK. on to out of state. if you have limited capital, should you buy a random property thousands of miles away, just because you found BP and now have to do a deal? nope, nope, nope. again, the market is tough right now for just about every strategy, with prices and interest rates high. and for LTRs - there isn't any cash flow initially. none.
the first few years of ownership of an LTR will be INvesting - as in, you putting your hard-earned money into the property. you may know this from having a primary residence, but even purchasing itself is expensive as you have to pay a bunch of closing costs out of your own pocket.
so, i vote for building initial capital and also trying to stay closer to home even if it's a couple hours away.
how out of state investing can go if not done properly:
https://www.biggerpockets.com/forums/48/topics/1242392-rough...
https://www.biggerpockets.com/forums/48/topics/1137397-balti...
https://www.biggerpockets.com/forums/432/topics/1231840-sell...
https://www.biggerpockets.com/forums/311/topics/840134-memph...
https://www.biggerpockets.com/forums/963/topics/1195280-expe...
hope this helps. i'm happy to dialogue further / answer any questions you have. i've done a bit of everything at this point and i'm on here to help new investors not lose money.
43 Replies
- 1yBernice RetzloffPro MemberMemphis, TN · Member since 2024 · 234 posts · 100 votes
Hey @Benjamin Dolly! Great questions, and you’re clearly doing your homework before jumping in, which is the right move.
Here's the honest take: high leverage (80%+ LTV) can absolutely get you into the game faster, but it does come with tighter cash flow and less flexibility - especially in this interest rate environment. However, that doesn't mean you should automatically sit on the sidelines either.
Here’s how I’d think about it:
1. High leverage = low cash flow, but not always a deal breaker
If your main goal is long-term wealth building and not immediate income, a deal that breaks even or cash flows modestly can still make sense - as long as you’re buying in a market with stable rents and solid appreciation potential.
That said, you’ll want to keep strong reserves (3–6 months minimum) since one repair or vacancy can flip your cash flow negative at that leverage.
2. Creative or alternate strategies you might consider
House hacking: Live in one unit, rent out the others (duplex/triplex/quad). This lets you use owner-occupied financing with much lower down payments and rates.
Partnerships or joint ventures: Partner with someone who has more capital while you handle the analysis, operations, or financing legwork.
BRRRR (Buy, Rehab, Rent, Refinance, Repeat): Start smaller with a value-add deal where you can build equity quickly, then refinance to pull out capital.
Out-of-state turnkey rentals: Buy in a cash-flow market where your money stretches further - like Memphis, where entry prices are still affordable ($100–150K range) and rents stay strong.
3. Waiting isn’t always the best play
It’s tempting to “save up until it feels safe,” but real estate rewards time in the market more than timing the market. If you can find a deal that at least breaks even, gives you experience, and builds equity, that first one can be your launch pad for future opportunities.
If you ever want to explore the Memphis, TN market - where I work as a real estate agent helping out-of-state investors grow their rental portfolios - I’d be happy to show you what realistic returns look like here and connect you with vetted property management through FoundationPM.com.
You’ve got the right mindset already - the key now is finding a market that fits your capital and goals without overextending
- 11moBasit SiddiqiBusiness MemberAccountant · New York, NY · Member since 2015 · 8k+ posts · 3k+ votes
It is more important that you decide than what you decide.
There are so many different ways to make money with real estate. Pick one and go 100%
Basit Siddiqi CPA4.979 Reviews
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