Newbie from MD with some questions.

5 Replies

I am new to investing and new to the real estate market in general. I came across this site whilst trying to research a proposed property investment. I am in the early stages so would love to hear from people who have experience. I have three choices in front of me and I wonder if I can get some feedback on if any of them sound good.

1.) I have the option of purchasing a $40,000 property (I would pay in cash). It is what is considered a manufactured home on a park in a reasonable area. Nothing needs fixing and the condition of the home is great.  My plan in this case would be to live in this property, saving up money that I would have otherwise paid in rent and eventually sell it/rent it off whilst having earned money towards investment in another property.

2.) Buy a fixer upper house for $30,000 and spend up to $30,000 getting it up to code with the eventual goal to sell for profit. I think that I would be able to get a decent profit off this property but since I am new to all this, I feel this option is a risk. 

3.) The last option is to put a mortgage down on a house with a down payment of up to $60,000 and rent that property out. I like this option the least because I want to cut out bank loan costs where possible and pay fully, in cash.

I am leaning towards the first option but I have little knowledge of 'manufactured homes' in terms of whether they retain their value, whether you are even able to rent the home if it is on a mobile park, etc. This whole world is very confusing to me and I m just trying to find the best way to invest up to $60k in a starter property and work my way up.

To clarify, I rent now and this would be my first real estate purchase. Thanks!

@Mark Pererson , welcome to BP!

Why are you opposed to a bank loan?

One of the wonderful things about RE is that it allows you to leverage other peoples money and then have a tenant turn that money into yours

@Mark Pererson , welcome to BP!

Why are you opposed to a bank loan?

One of the wonderful things about RE is that it allows you to leverage other peoples money and then have a tenant turn that money into yours

My husband and I are newbies to REI also. We are currently seeking to flip properties as our first move. Based on our education, that seems to be the place to start. Then, hopefully move into buy and hold properties for rent.

That second option seems like a great first to us. Good luck with whatever you choose though.

@Mark Pererson

Welcome to Bigger Pockets. BP is full of resources. You will find resources here from blogs to pod casts and forums. You can also send messages to members. This is one of my favorite features of Bigger Pockets especially for asking specific questions.

Hi Mark!

I am a newbie as well.

First, I would like to give you the permission, and freedom, to invest any way you choose. I fully support all cash investing and no bank loans. I find it so funny that the mere mention of wanting to invest using all cash, around a group of real estate investors, is immediately followed by "why would you ever think of such a thing", and "why using a bank is the only way to invest wisely" rather than just treating you like any other new real estate investor and giving you real estate advice.  I don't know... maybe you don't like the idea of paying interest, or getting foreclosed, or filing bankruptcy. Or maybe you prefer your profits to go into your pocket rather than servicing debt? Numerous businesses/corporations, or make it a point to operate debt free. But, I digress.

I don't have much advice to give you on your three options you presented, but I too am looking into investing in mobile homes. Based upon what I have learned so far, $40,000 seems like you maybe overpaying and I don't think you will get any appreciation, unless it is on it's own land. If you want advice, at least on this first option, I would try to find John Fedro here on bigger pockets, or He seems to know everything mobile homes.

Good luck!

Randy Buckman

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