How much capital do I really need to get started
Hi BP,
I have been lurking around the forums and blogs for sometime now, and feel I am ready to start my journey into real estate investment. I am in my young 20's, starting a full-time job next week that pays a 70k salary, and have a credit score of nearly 800. I have no prior experience in real estate investing, but have done a lot of research, and am determined to reach the personal real estate goals of having my first rental property by early 2015. I plan on buying and holding single family homes between $75,000 and $100,000 and renting them out.
I have 10k in the bank right now, and plan to have around 20k by the end of November. I want to get started as soon as possible. Now my question is, what is a ballpark estimate of the real amount of capital I need to have a stable start in buying and renting 75,000-100000$ SFH, if I plan on putting a 20/25% down-payment?
I have a friend with similar goals, that has capital in the bank as well. However, the only thing he offers is capital since he lacks any experience in real estate, contracting, etc. The only reasons I would bring him on are because we both work full time jobs, and our rental property is likely to be at least a few hours away from where we reside. That way we can split weekends and the amount of time we spent managing the property.
I want to get started ASAP, but if I don't have enough $$, should I just wait a few more months, or bring my friend in on the deal? Thanks alot BP. Once I figure this out, I can move onto the next step of my plan.