A little bit about me.
I am planning on starting to invest in real estate in the next 6 months.
I am 23, I live in NYC because of work but plan to invest in my hometown in Texas. It’s a town that is growing but not as big as San Antonio or Houston.
There are a lot of old houses for sale. Modern houses seem to be in demand. Not a lot of apartments in demand but people do rent.
My problem is that I don’t know what my first investment should be.
I can either buy land and save a bit more money and then build either a house or a duplex. ( I fear that the cost will be too high or that I will be stuck paying the mortgage without any income coming in. I also fear that construction will take too long and that the houses will make me make a lot of payments before even seeing profit)
I can also buy an apartment or a house and start renting it right away. (The problem is that most modern houses are too expensive for my price range and there are a lot of old houses for sale and that leads me to think that the demand is low for those houses.)
Flipping seems like an alternative but because I don’t live in my hometown, it could be a burden to do everything through the phone.
No to flipping. Without experience, forget it. Takes a lot of time, a lot of cash, and a lot of oversite for a "hopeful" profit.
No to land. Your money is tied up for no return and you "hope" for a profit at some point far away.
Buying a rental property is the best way to leverage your money and start generating income, tax advantage, and potential appreciation the soonest.
You're brand new and planning to invest out of state so all of my red flags are going up. You need education. Eyes on the ground in Texas would be tremendous help. Perhaps hook up with a successful investor there and fund some of his/her deals for profit splits that will help you learn?
At any rate, good luck to you and let us know how you progress.
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