60k to invest ideas?
Houston, TX · Member since 2015 · 98 posts · 24 votes
60k to invest ideas?
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Logan AllecBusiness Member
Accountant · Los Angeles, CA · Member since 2014 · 1k+ posts · 980 votesIf I were in Indiana, I'd start a turnkey company. But that's just me.
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- Houston, TX · Member since 2015 · 98 posts · 24 votes10y
Originally posted by @Thomas Landis:
Hey Alec, a few of us are starting a Mastermind/REIA here in Bloomington. If your interested and available this would be a great conversation to have.
We are meeting this Saturday (and every 3rd Saturday) at 9am at Scholar's Inn on 3rd St.
More info here: https://www.biggerpockets.com/forums/48/topics/218...
Sounds good I'll be there
- Investor · South Barrington, IL · Member since 2011 · 102 posts · 57 votes10y
$60k is a good chunk of change to start with. Agree with other posts, get a good education by reading books and going to courses.
But a simple formula for getting started is this: Find out where the low cost properties are near you. Drive the neighborhoods. Sit down with a few realtors in your area who specialize in duplexes and investment properties. Go around with them as well. Get their insights on what areas are good and what areas to stay away from. Get a sense for what properties are going for in an area that seems good to you(there is no science to this other than to use your judgment which will improve over time).
Then after al the meditating and analyzing, jump in by buying your first duplex. There is nothing like learning when your own money is on the line and your emotions come into play. You will learn a lot. Get quotes from contractors for the fix up and see what you can do yourself.
Strongly consider section 8 tenants. Its guaranteed government rental income and its not that hard to pass inspection by fixing up your properties right the first time.
The numbers I look for are $10k to $15k acquire junker. Spend $10k to $15k in rehab. Total of between $30k to $35k in acquisition and fix up costs. Get a section 8 renter in each side paying at least $600/month for a total of $1200/month gross, minus 50% expenses for net positive cashflow of $600/month.
Get ONE duplex up and running like this for at least 6 months. Get to know the tenants and the common issues that come up.
Then do your second deal. Rinse and repeat.
This is what I do. I have done it with a 5 unit property as well.
Best of luck !
Faisal
- Houston, TX · Member since 2015 · 98 posts · 24 votes10y
Originally posted by @Faisal Sami:
$60k is a good chunk of change to start with. Agree with other posts, get a good education by reading books and going to courses.
But a simple formula for getting started is this: Find out where the low cost properties are near you. Drive the neighborhoods. Sit down with a few realtors in your area who specialize in duplexes and investment properties. Go around with them as well. Get their insights on what areas are good and what areas to stay away from. Get a sense for what properties are going for in an area that seems good to you(there is no science to this other than to use your judgment which will improve over time).
Then after al the meditating and analyzing, jump in by buying your first duplex. There is nothing like learning when your own money is on the line and your emotions come into play. You will learn a lot. Get quotes from contractors for the fix up and see what you can do yourself.
Strongly consider section 8 tenants. Its guaranteed government rental income and its not that hard to pass inspection by fixing up your properties right the first time.
The numbers I look for are $10k to $15k acquire junker. Spend $10k to $15k in rehab. Total of between $30k to $35k in acquisition and fix up costs. Get a section 8 renter in each side paying at least $600/month for a total of $1200/month gross, minus 50% expenses for net positive cashflow of $600/month.
Get ONE duplex up and running like this for at least 6 months. Get to know the tenants and the common issues that come up.
Then do your second deal. Rinse and repeat.
This is what I do. I have done it with a 5 unit property as well.
Best of luck !
Faisal
Thanks for the advice I'm exploring all options but getting lower cost duplexes and multi-family units is high on my interest list.
How many doors do you manage? How long did it take to get there? Do you manage your own properties?
- Investor · South Barrington, IL · Member since 2011 · 102 posts · 57 votes10y
In my opinion , you have to endeavor to become a practitioner of real estate investing if you want to be successful in real estate. This means gaining knowledge , learning through experience and yes managing your own properties..
I manage all of my own properties but not in the way you think. I DONT drive a junky car around, nor do I fix toilets. I have employees and a maintenance crew that I have work on these things for me. Most of what I do involves sending targeted commands to my employees and meaningful conversations with my maintenance crew and tenants.
I can tell you that I own greater than 20 units. And it took me 5 years to get yo this point. It all starts with ONE property. You may be able to do it faster. I took my time to learn the business .
Best of luck !
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