I'm 22, I make around 45K a year and I live in NJ. I plan on saving for the next two years and moving down south to GA with my gf (because I love GA) to buy a nice 150K~ Condo and start my investing career!
I convinced my parents to pursue real estate investing full time and to sell property worth 220~250K within the next 4-5 years and to completely relocate down south. Within then I would have around 40-50K cash saved up.
My dad would do more handyman work, but of course I will do the most I can and I would deal with the tenants.
I'm looking around the Duluth, Alpharetta, Atlanta section to begin my investing career. I also looked into multi-units (duplex,triplex etc), but they all look run down or unattractive and the last thing I want to to attract the bad tenants.
I guess my questions are: Are single family homes and condos good investment options or should I stick with apartments/multi units? Is GA a good place to invest?
Welcome to BP!
Stay away from condos. Those HOA fees eat your profit. There are several articles on this here on BP.
I think you can find good areas in every state. Sometimes you just have to look a little further.
With a multiunit you could potentially live in one side and live for free. Single family homes are almost always a good renter.
I don't think there is a right or wrong answer, they both are very viable options.
Which you choose may come down to price. In most area's a duplex, quadplex, etc will be more expensive then say a SFH. Do some research on the area and see what the prices are of the homes. Also check out the rental rates.
It's very very important when you do pick a place that you run the numbers to make sure you have positive cash flow. Scenarios such as : What if the rental rates go down $100 a month will you still cashflow? What if you can't find tenants right away? What if property taxes skyrocket? You always want to have some money in reserve because you never know what can happen. My first year I had to buy an air conditioner and 2 months later a furnace. I spent 10k that first 6 months. 3 months later sewage backed up in the basement and I was out another 350 dollars for a plumber. Always be prepared for the unexpected. So many people don't account for these things and in the end they lose the property because they didn't crunch the numbers or didn't have money to fix the problems.
Which you choose really depends on where you want to be and what your goals are in life.
Podcasts and the ultimate guide under learning tab up top are a great free resource. Soak up all that information before even thinking about buying.
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing