Jump start into real estate investing

[David Edwards]

I am moving to greenville, sc in August.  I have roughly $25,000 to work with, and I would like to start getting into investing. 

I have found a $45,000 house that needs minor cosmetic work (Basically new paint).  2 bed, 1 bath.  If I put 20% down ($9,000) my monthly payments including tax and ins. is roughly $250.  Zillow estimates rent at $800.  That's $550 monthly income if my numbers are close.

That leaves me roughly $15,000.  I would like to use the rest to put a 10% down payment on a $100,000 home to flip while I live there. 

This seems like a good way to get a jump start.  I am able to get 2 properties.  One providing rental income while still being able to purchase a house to flip. 

Is this a good idea?  bad idea?  I appreciate the advice!

[Joe Villeneuve]

You're taking your money and "dead ending" it by putting it into these two properties and leaving them there.  Why this is a bad thing to do can be answered with a question...once you execute the above deals, what do you do next?

You should have that answer before you execute any deal.  You need to have the exit strategy of every deal you do based on the entrance strategy of the next deal, so your money is always moving forward.

You need to redefine the word "money" as being a verb instead of a noun.  When your money becomes a noun...you stop moving forward, and you lose.