Best way to invest with $20-$25K?

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Best way to invest with $20-$25K?

Raeshelle C.
anywhere, MA · Member since 2015 · 116 posts · 61 votes

I'm currently saving right now, but I estimate that in 3 years I will have saved $20K-$25K. I'm 27.

I want to make $10K/mo and retire early. What I'm having trouble with is, if I use that $20-25K on real estate, I need help finding out how I should begin with my investing. I know I am just saving now, but I like to create a plan. I don't know which is the best path to go down if I want to make $10K/mo within 10 years of buying my first rental. I live in MA and houses here are not cheap. What I'd like to do is buy multifamilies that are in fair/good condition (no repairs needed) using the FHA loan, but all the multifamilies around here that's cheap, near where I work, all need repairs. The cheap multifamilies that dont need work are far from my job so I can't live in them with FHA. I don't have extra money to pay for repairs, and saving extra for that would take even longer, and that would delay my wealth.

Then I was thinking, I'll just invest in out-of-state turnkey single families in places like Alabama, Georgia and Florida because down payments for those houses would be cheap, since the houses down there are cheap. But I would also be taking out one loan after another to buy these single family houses. I fear I would get rejected by the banks, like they may not allow me to have all these loans; I also fear it's too dangerous to take out so many loans too (I cant buy houses in cash). I know I'd only be making around $250/mo in cash flow after expenses too, per turnkey single family house, in the first couple years. I just really don't know what the best option is as far as real estate investing, that's doable for me. I'd only have $20-25K to start with.

Can anyone give strategies?

1Reply
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Brian Pickens
Tampa, FL · Member since 2016 · 1 post · 18 votes
9y

I don't know know why everyone continues to throw their hat in the ring just to get some rude retort. She obviously knows what she's doing.

@Raeshelle Cooke

You specifically asked, "Can anyone give strategies?" - then why are you so defensive and jumping all over these people who are taking the time out of their day and simply offering their answer to your question. Perhaps they are just giving you some different things to consider, seeing as that you're new to all this. Challenge is good sometimes, it doesn't always have to be filled with such vitriol.

We don't know what you do or don't know. This is a forum to give feedback, discuss ideas and options. If you already have an answer to anything anyone is going to suggest, then you don't need anyone's help in this forum.

Your attitude alone, and the fact that you aren't even open to hearing what may be opposing viewpoints, is discouraging and really, in my opinion, where you need to start. Drop the chip on your shoulder, open your mind, and just have a polite and friendly conversation. We're all here to help one another.

Good luck to you!

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  • Hazel Wiggs
    Union City, CA · Member since 2017 · 35 posts · 13 votes
    9y

    Hi Raeshelle!

    I'm in a similar situation as you. I currently have 21K in a retirement fund plus 3K in cash. ( I'm also currently putting away money to save for real estate ) Still trying to figure out the best way to tap into my retirement funds.

    I live in SF Bay Areal, so i feel for you on how expensive it is.  I'm currently searching for possible opportunities 1-2 hours away from the bay area. 

    I've reached out to so many people and currently building a relationship with them. I know how eager you must feel to get started with real estate investing because i am in the same boat as you. 

    Reaching out to an agent and or seasoned investor that knows your desired market is your best bet. There are so many creative ways to find a good deal that fits your current financial needs. Posting and engaging on BP is a great way to start.  

    My suggestion for you having 20K-25K is to partner up with someone that also has 20K-25K or more. 

    Good luck, Raeshelle!

    3Reply
  • Brent Coombs
    Investor · Cleveland, OH · Member since 2015 · 6k+ posts · 2k+ votes
    9y

    @Raeshelle C., the best thing is: you've found the right learning resource - here at BP!

    You're asking all the right questions, and there's no super urgency, while you're saving.

    Take your time, soaking up all the webinars and blogs and threads here that you can find.

    You'll find the "Search BiggerPockets" (at the top of screen) really useful.

    Your way forward should become clearer to you as you become closer to being ready.

    I recommend starting out investing in your own 4-plex primary using FHA, rather than out of state Turnkey (which are invariably sold for full market value, despite what the TK Company might say).

    Keep asking good questions, and taking the right SAVINGS steps - and you'll get there! Cheers.

    7Reply
  • Tom Ott
    Equity Raiser and Turnkey Provider · Cleveland, OH · Member since 2016 · 4k+ posts · 1k+ votes
    9y
    Originally posted by @Raeshelle C.:

    I'm currently saving right now, but I estimate that in 3 years I will have saved $20K-$25K. I'm 27.

    I want to make $10K/mo and retire early. What I'm having trouble with is, if I use that $20-25K on real estate, I need help finding out how I should begin with my investing. I know I am just saving now, but I like to create a plan. I don't know which is the best path to go down if I want to make $10K/mo within 10 years of buying my first rental. I live in MA and houses here are not cheap. What I'd like to do is buy multifamilies that are in fair/good condition (no repairs needed) using the FHA loan, but all the multifamilies around here that's cheap, near where I work, all need repairs. The cheap multifamilies that dont need work are far from my job so I can't live in them with FHA. I don't have extra money to pay for repairs, and saving extra for that would take even longer, and that would delay my wealth.

    Then I was thinking, I'll just invest in out-of-state turnkey single families in places like Alabama, Georgia and Florida because down payments for those houses would be cheap, since the houses down there are cheap. But I would also be taking out one loan after another to buy these single family houses. I fear I would get rejected by the banks, like they may not allow me to have all these loans; I also fear it's too dangerous to take out so many loans too (I cant buy houses in cash). I know I'd only be making around $250/mo in cash flow after expenses too, per turnkey single family house, in the first couple years. I just really don't know what the best option is as far as real estate investing, that's doable for me. I'd only have $20-25K to start with.

    Can anyone give strategies?

    Using those funds for a Turnkey down payment might be a great idea! That could get you a 20% down payment on a property in many markets where you can see 15-25% ROI.

    What markets have you been looking into?

    0Reply
  • Raeshelle C.
    OP
    anywhere, MA · Member since 2015 · 116 posts · 61 votes
    9y
    Originally posted by @Tom Ott:

    What markets have you been looking into?

    Thanks for your feedback @Tom Ott. I'm looking in Birmingham Alabama, different towns in Georgia, and Florida too. I'm looking in places where the down payment would be $5K to $8K, so that I could take out a loan and put 20% down on it. The thing is, these houses cash flow to just $250 or less per month, at least in the first couple years. So I'd want to take out more loans to buy more houses so that the cash flow can be full-time cash flow; so that I can eventually also make $10K. But would the banks allow me to take out so many loans, one after another? And is that too dangerous to have so many loans anyway? If you have feedback on that I'd greatly appreciate it. 

    1Reply
  • Raeshelle C.
    OP
    anywhere, MA · Member since 2015 · 116 posts · 61 votes
    9y
    Originally posted by @Tom Ott:
    Originally posted by @Raeshelle C.:

    I'm currently saving right now, but I estimate that in 3 years I will have saved $20K-$25K. I'm 27.

    I want to make $10K/mo and retire early. What I'm having trouble with is, if I use that $20-25K on real estate, I need help finding out how I should begin with my investing. I know I am just saving now, but I like to create a plan. I don't know which is the best path to go down if I want to make $10K/mo within 10 years of buying my first rental. I live in MA and houses here are not cheap. What I'd like to do is buy multifamilies that are in fair/good condition (no repairs needed) using the FHA loan, but all the multifamilies around here that's cheap, near where I work, all need repairs. The cheap multifamilies that dont need work are far from my job so I can't live in them with FHA. I don't have extra money to pay for repairs, and saving extra for that would take even longer, and that would delay my wealth.

    Then I was thinking, I'll just invest in out-of-state turnkey single families in places like Alabama, Georgia and Florida because down payments for those houses would be cheap, since the houses down there are cheap. But I would also be taking out one loan after another to buy these single family houses. I fear I would get rejected by the banks, like they may not allow me to have all these loans; I also fear it's too dangerous to take out so many loans too (I cant buy houses in cash). I know I'd only be making around $250/mo in cash flow after expenses too, per turnkey single family house, in the first couple years. I just really don't know what the best option is as far as real estate investing, that's doable for me. I'd only have $20-25K to start with.

    Can anyone give strategies?

    Using those funds for a Turnkey down payment might be a great idea! That could get you a 20% down payment on a property in many markets where you can see 15-25% ROI.

    What markets have you been looking into?

    For example, with $25K I could buy one turn key house in Birmingham, Alabama for $52K with 20% down ($12K-ish). The house would cash flow $257/mo. And I'd have another $12K to buy a second Alabama house (20% down) and that house would cash flow for $223/mo. Then I'd have cash flow of $480/mo in total. But I don't know if that's smart or if banks would even allow that many loans.

    1Reply
  • Spencer SuttonBusiness Member
    Investor · Birmingham, AL · Member since 2015 · 119 posts · 148 votes
    9y

    Hey Raeshelle,

    I have lived in Birmingham my whole life and have been buying/selling/renting houses since 2003.

    My advice is to be very careful. Assuming you will have $200+ cash flow on a turnkey for the first couple of years can be a bit dangerous.

    I would be as conservative as possible with your numbers and do plenty of homework on the ZIP, area, immediate neighborhood, and street. 

    Finding tenants is easy...but finding great tenants is more difficult and takes a disciplined process. Make sure your TK provider has done a good job of underwriting potential tenants.

    Best of luck to you and let me know if you ever have any questions!

    Spencer

    205-336-2559
    Evernest4.63671 Reviews
    WebsiteView Page
    6Reply
  • Larry Fried
    Investor/RE Broker · Eugene, OR · Member since 2014 · 3k+ posts · 968 votes
    9y

    @Raeshelle C. Well sounds like you have a lot of time to build up your reserves before you make your first investment anyway, so breath easy and take the time to learn.  If you are planning to buy and hold, using all your reserves for down payment and closing costs is risky.  You need to have something in reserve in case something goes wrong - and you need money for repairs or have an unexpected vacancy and need to cover your monthy debt and tax expense.

    As far as having too many loans, it is all based on your income and debt ratios, but you can do upto 10 conventional loans under your name.  If you are married, your spouse can do another 10.  Then there are other financing methods, like portfolio loans, commercial loans etc.  I think you are getting ahead of yourself.

    @Hazel Wiggs Are your retirement funds in a self-directed account? If so, there are other ways you can put that money to work in REI.

    2Reply
  • Raeshelle C.
    OP
    anywhere, MA · Member since 2015 · 116 posts · 61 votes
    9y
    Originally posted by @Larry Fried:

    @Raeshelle C. Well sounds like you have a lot of time to build up your reserves before you make your first investment anyway, so breath easy and take the time to learn.  If you are planning to buy and hold, using all your reserves for down payment and closing costs is risky.  You need to have something in reserve in case something goes wrong - and you need money for repairs or have an unexpected vacancy and need to cover your monthy debt and tax expense.

    As far as having too many loans, it is all based on your income and debt ratios, but you can do upto 10 conventional loans under your name.  If you are married, your spouse can do another 10.  Then there are other financing methods, like portfolio loans, commercial loans etc.  I think you are getting ahead of yourself.

    @Hazel Wiggs Are your retirement funds in a self-directed account? If so, there are other ways you can put that money to work in REI.

     I'm just going to pool my money with another investor. I do not have the time to spend ANOTHER several years after my first 3 years, saving for repairs and all that. While every other investor is getting wealthy, I'll be old, just saving money, not getting wealthy. No. I don't have time for that. 

    2Reply
  • Hazel Wiggs
    Union City, CA · Member since 2017 · 35 posts · 13 votes
    9y

    @Larry Fried It's not self-directed. If i decide to leave my employer, i would have the opportunity to elect it as a self-directed.  I wonder if the penalties of withdrawing the funds would be worth it? I'm sure in some cases, it may be but i don't know if it would be for me since i only have 21K. I would love to explore the possibilities of withdrawing the funds. I think my best bet is to contact Fidelity directly. 

    0Reply
  • Andrey Y.
    Specialist · Honolulu, HI · Member since 2014 · 1k+ posts · 1k+ votes
    9y
    Originally posted by @Raeshelle C.:

    I'm currently saving right now, but I estimate that in 3 years I will have saved $20K-$25K. I'm 27.

    I want to make $10K/mo and retire early. What I'm having trouble with is, if I use that $20-25K on real estate, I need help finding out how I should begin with my investing. I know I am just saving now, but I like to create a plan. I don't know which is the best path to go down if I want to make $10K/mo within 10 years of buying my first rental. I live in MA and houses here are not cheap. What I'd like to do is buy multifamilies that are in fair/good condition (no repairs needed) using the FHA loan, but all the multifamilies around here that's cheap, near where I work, all need repairs. The cheap multifamilies that dont need work are far from my job so I can't live in them with FHA. I don't have extra money to pay for repairs, and saving extra for that would take even longer, and that would delay my wealth.

    Then I was thinking, I'll just invest in out-of-state turnkey single families in places like Alabama, Georgia and Florida because down payments for those houses would be cheap, since the houses down there are cheap. But I would also be taking out one loan after another to buy these single family houses. I fear I would get rejected by the banks, like they may not allow me to have all these loans; I also fear it's too dangerous to take out so many loans too (I cant buy houses in cash). I know I'd only be making around $250/mo in cash flow after expenses too, per turnkey single family house, in the first couple years. I just really don't know what the best option is as far as real estate investing, that's doable for me. I'd only have $20-25K to start with.

    Can anyone give strategies?

    Your fears in the last paragraph are correct. If something is cheap, its cheap for a reason -- ie. people don't want it. That should tell you if you should invest there.

    You want to find properties in a great location, not expensive, and require no repairs. I hate to break it to you, but that is a dream. You are going to have to bust your butt to create value. Everyone wants to (or thinks they do) make $10/month and retire early.

    You are pretty young, keep educating yourself, and level up your mind and mindset. Don't save too much money. Go out, travel and get a feel of how people are living, what else is out there, and get some perspective. Or give some of your money to a good cause. Figure out what your goals are from there. You may realize you need a lot less or a lot more than $10k a month.

    Saving doesn't work as a general strategy. You cannot shrink your way to wealth. It only works for Dave Ramsey or Suze Orman who are making money to tell people they should save their pennies. Good luck!

    10Reply
  • Larry Fried
    Investor/RE Broker · Eugene, OR · Member since 2014 · 3k+ posts · 968 votes
    9y
    Originally posted by @Hazel Wiggs:

    @Larry Fried It's not self-directed. If i decide to leave my employer, i would have the opportunity to elect it as a self-directed.  I wonder if the penalties of withdrawing the funds would be worth it? I'm sure in some cases, it may be but i don't know if it would be for me since i only have 21K. I would love to explore the possibilities of withdrawing the funds. I think my best bet is to contact Fidelity directly. 

     Hazel, I doubt seriously it would be worth the early withdrawal.  There is a 10% penalty, plus you have to pay the deferred income taxes during the year of withdrawal. That could all add up to a lot.

    0Reply
  • Hazel Wiggs
    Union City, CA · Member since 2017 · 35 posts · 13 votes
    9y

    @Larry Fried i agree!

    0Reply
  • Raeshelle C.
    OP
    anywhere, MA · Member since 2015 · 116 posts · 61 votes
    9y
    Originally posted by @Andrey Y.:
    Originally posted by @Raeshelle C.:

    I'm currently saving right now, but I estimate that in 3 years I will have saved $20K-$25K. I'm 27.

    I want to make $10K/mo and retire early. What I'm having trouble with is, if I use that $20-25K on real estate, I need help finding out how I should begin with my investing. I know I am just saving now, but I like to create a plan. I don't know which is the best path to go down if I want to make $10K/mo within 10 years of buying my first rental. I live in MA and houses here are not cheap. What I'd like to do is buy multifamilies that are in fair/good condition (no repairs needed) using the FHA loan, but all the multifamilies around here that's cheap, near where I work, all need repairs. The cheap multifamilies that dont need work are far from my job so I can't live in them with FHA. I don't have extra money to pay for repairs, and saving extra for that would take even longer, and that would delay my wealth.

    Then I was thinking, I'll just invest in out-of-state turnkey single families in places like Alabama, Georgia and Florida because down payments for those houses would be cheap, since the houses down there are cheap. But I would also be taking out one loan after another to buy these single family houses. I fear I would get rejected by the banks, like they may not allow me to have all these loans; I also fear it's too dangerous to take out so many loans too (I cant buy houses in cash). I know I'd only be making around $250/mo in cash flow after expenses too, per turnkey single family house, in the first couple years. I just really don't know what the best option is as far as real estate investing, that's doable for me. I'd only have $20-25K to start with.

    Can anyone give strategies?

    Your fears in the last paragraph are correct. If something is cheap, its cheap for a reason -- ie. people don't want it. That should tell you if you should invest there.

    You want to find properties in a great location, not expensive, and require no repairs. I hate to break it to you, but that is a dream. You are going to have to bust your butt to create value. Everyone wants to (or thinks they do) make $10/month and retire early.

    You are pretty young, keep educating yourself, and level up your mind and mindset. Don't save too much money. Go out, travel and get a feel of how people are living, what else is out there, and get some perspective. Or give some of your money to a good cause. Figure out what your goals are from there. You may realize you need a lot less or a lot more than $10k a month.

    Saving doesn't work as a general strategy. You cannot shrink your way to wealth. It only works for Dave Ramsey or Suze Orman who are making money to tell people they should save their pennies. Good luck!

     I disagree. I know myself. I'm not a naive little girl that doesn't know myself, what I want or anything about life. I know that I want to make $10K/mo. $5K after taxes will also do. 

    I've traveled and do continue to, and live.

    Saving money will get me there. It does work. Just because it didn't work for you doesn't mean it won't work for me. 

    I will give money to causes once I have the money to give. 

    I already know what my goals are.

    I listened to an audio book, The Science of Getting Rich, and it warned me about not getting distracted or discouraged from people that say the things you do. So, I'll just keep scrolling and keep on working towards my goals. I will get there. I've already decided.

    6Reply
  • Lane Kawaoka
    Rental Property Investor · Honolulu, HAWAII (HI) · Member since 2011 · 4k+ posts · 2k+ votes
    9y
    You might be a little to low for syndications and it seems you are not an accredited so I would say save a bit more and buy a 100k home.
    3Reply
  • Andrey Y.
    Specialist · Honolulu, HI · Member since 2014 · 1k+ posts · 1k+ votes
    9y
    Originally posted by @Raeshelle C.:
    Originally posted by @Andrey Y.:
    Originally posted by @Raeshelle C.:

    I'm currently saving right now, but I estimate that in 3 years I will have saved $20K-$25K. I'm 27.

    I want to make $10K/mo and retire early. What I'm having trouble with is, if I use that $20-25K on real estate, I need help finding out how I should begin with my investing. I know I am just saving now, but I like to create a plan. I don't know which is the best path to go down if I want to make $10K/mo within 10 years of buying my first rental. I live in MA and houses here are not cheap. What I'd like to do is buy multifamilies that are in fair/good condition (no repairs needed) using the FHA loan, but all the multifamilies around here that's cheap, near where I work, all need repairs. The cheap multifamilies that dont need work are far from my job so I can't live in them with FHA. I don't have extra money to pay for repairs, and saving extra for that would take even longer, and that would delay my wealth.

    Then I was thinking, I'll just invest in out-of-state turnkey single families in places like Alabama, Georgia and Florida because down payments for those houses would be cheap, since the houses down there are cheap. But I would also be taking out one loan after another to buy these single family houses. I fear I would get rejected by the banks, like they may not allow me to have all these loans; I also fear it's too dangerous to take out so many loans too (I cant buy houses in cash). I know I'd only be making around $250/mo in cash flow after expenses too, per turnkey single family house, in the first couple years. I just really don't know what the best option is as far as real estate investing, that's doable for me. I'd only have $20-25K to start with.

    Can anyone give strategies?

    Your fears in the last paragraph are correct. If something is cheap, its cheap for a reason -- ie. people don't want it. That should tell you if you should invest there.

    You want to find properties in a great location, not expensive, and require no repairs. I hate to break it to you, but that is a dream. You are going to have to bust your butt to create value. Everyone wants to (or thinks they do) make $10/month and retire early.

    You are pretty young, keep educating yourself, and level up your mind and mindset. Don't save too much money. Go out, travel and get a feel of how people are living, what else is out there, and get some perspective. Or give some of your money to a good cause. Figure out what your goals are from there. You may realize you need a lot less or a lot more than $10k a month.

    Saving doesn't work as a general strategy. You cannot shrink your way to wealth. It only works for Dave Ramsey or Suze Orman who are making money to tell people they should save their pennies. Good luck!

     I disagree. I know myself. I'm not a naive little girl that doesn't know myself, what I want or anything about life. I know that I want to make $10K/mo. $5K after taxes will also do. 

    I've traveled and do continue to, and live.

    Saving money will get me there. It does work. Just because it didn't work for you doesn't mean it won't work for me. 

    I will give money to causes once I have the money to give. 

    I already know what my goals are.

    I listened to an audio book, The Science of Getting Rich, and it warned me about not getting distracted or discouraged from people that say the things you do. So, I'll just keep scrolling and keep on working towards my goals. I will get there. I've already decided.

    Name me one person that has created wealth or financial independence by "saving money"? It has never happened, not to me nor anyone else. All saving money does is decrease your quality of life. You can only save so much, probably not much more than you already do. Wealth is created by income generation, which takes as much effort as saving money, if not less. Say you have been supporting yourself on $3k a month for the last year or two, you will be very hard pressed to go down to $2.5k a month, if you don't believe me, then try it.

    You're reply comes off as defensive. There is likely an underlying reason why you felt that way. No one told you to stop working towards your goals, by the way.

    4Reply
  • Raeshelle C.
    OP
    anywhere, MA · Member since 2015 · 116 posts · 61 votes
    9y
    Originally posted by @Andrey Y.:
    Originally posted by @Raeshelle C.:
    Originally posted by @Andrey Y.:
    Originally posted by @Raeshelle C.:

    I'm currently saving right now, but I estimate that in 3 years I will have saved $20K-$25K. I'm 27.

    I want to make $10K/mo and retire early. What I'm having trouble with is, if I use that $20-25K on real estate, I need help finding out how I should begin with my investing. I know I am just saving now, but I like to create a plan. I don't know which is the best path to go down if I want to make $10K/mo within 10 years of buying my first rental. I live in MA and houses here are not cheap. What I'd like to do is buy multifamilies that are in fair/good condition (no repairs needed) using the FHA loan, but all the multifamilies around here that's cheap, near where I work, all need repairs. The cheap multifamilies that dont need work are far from my job so I can't live in them with FHA. I don't have extra money to pay for repairs, and saving extra for that would take even longer, and that would delay my wealth.

    Then I was thinking, I'll just invest in out-of-state turnkey single families in places like Alabama, Georgia and Florida because down payments for those houses would be cheap, since the houses down there are cheap. But I would also be taking out one loan after another to buy these single family houses. I fear I would get rejected by the banks, like they may not allow me to have all these loans; I also fear it's too dangerous to take out so many loans too (I cant buy houses in cash). I know I'd only be making around $250/mo in cash flow after expenses too, per turnkey single family house, in the first couple years. I just really don't know what the best option is as far as real estate investing, that's doable for me. I'd only have $20-25K to start with.

    Can anyone give strategies?

    Your fears in the last paragraph are correct. If something is cheap, its cheap for a reason -- ie. people don't want it. That should tell you if you should invest there.

    You want to find properties in a great location, not expensive, and require no repairs. I hate to break it to you, but that is a dream. You are going to have to bust your butt to create value. Everyone wants to (or thinks they do) make $10/month and retire early.

    You are pretty young, keep educating yourself, and level up your mind and mindset. Don't save too much money. Go out, travel and get a feel of how people are living, what else is out there, and get some perspective. Or give some of your money to a good cause. Figure out what your goals are from there. You may realize you need a lot less or a lot more than $10k a month.

    Saving doesn't work as a general strategy. You cannot shrink your way to wealth. It only works for Dave Ramsey or Suze Orman who are making money to tell people they should save their pennies. Good luck!

     I disagree. I know myself. I'm not a naive little girl that doesn't know myself, what I want or anything about life. I know that I want to make $10K/mo. $5K after taxes will also do. 

    I've traveled and do continue to, and live.

    Saving money will get me there. It does work. Just because it didn't work for you doesn't mean it won't work for me. 

    I will give money to causes once I have the money to give. 

    I already know what my goals are.

    I listened to an audio book, The Science of Getting Rich, and it warned me about not getting distracted or discouraged from people that say the things you do. So, I'll just keep scrolling and keep on working towards my goals. I will get there. I've already decided.

    Name me one person that has created wealth or financial independence by "saving money"? It has never happened, not to me nor anyone else. All saving money does is decrease your quality of life. You can only save so much, probably not much more than you already do. Wealth is created by income generation, which takes as much effort as saving money, if not less. Say you have been supporting yourself on $3k a month for the last year or two, you will be very hard pressed to go down to $2.5k a month, if you don't believe me, then try it.

    You're reply comes off as defensive. There is likely an underlying reason why you felt that way. No one told you to stop working towards your goals, by the way.

    I'm not arguing with you. I'm going to save and I'm going to buy with my savings. It's GOING to happen. 100%. It's not going to magically not happen now because you said it won't. You basically just dismissed every investor on this forum. Or maybe you're saying I'm dumber than every investor on this forum and can't and won't do what they all already did. I will save and buy.  And when I do, I will post here that I did, and I will tag you so that you don't come on other people's posts in the future arguing with them, telling what's not going to work for them. Have a good night. 

    0Reply
  • Raeshelle C.
    OP
    anywhere, MA · Member since 2015 · 116 posts · 61 votes
    9y
    Originally posted by @Lane Kawaoka:

    You might be a little to low for syndications and it seems you are not an accredited so I would say save a bit more and buy a 100k home.

    Not quite. I'm apart of an investment club already and have many opportunities to invest when I save enough. Already in a club. 

    0Reply
  • Ethan Atkinson
    Investor · Athens, GA · Member since 2011 · 306 posts · 156 votes
    9y
    Take some time each night and write letters to some of the multifamily owners near where you want to be and send as many letters as it takes and they will start calling you. Tell them you want to buy their property. Eventually you will find that diamond in the rough that an owner could be Willing to finance for you. Or even let you take over payments if they already have a loan in place(subject-to). Don't stop sending out letters. You need to find something that will help you get $400 per month or more. There are deals deals deals just waiting if you take action and don't worry about what's listed for sale. Go and find the stuff not advertised.
    8Reply
  • Eric Delcol
    Investor · Tampa, FL · Member since 2016 · 334 posts · 215 votes
    9y
    @Raeshelle C.


     To answer your original question - have you thought of house hacking?  You could use that $25K to upgrade your home to sell or re-finance.

    "I'm looking in Birmingham Alabama, different towns in Georgia, and Florida too. I'm looking in places where the down payment would be $5K to $8K, so that I could take out a loan and put 20% down on it."

    Do you have a lender that will finance a deal like that?  

    In my experience I've never seen a lender who is able to do a mortgage less than $75K.

    If you know of a lender that will finance a loan worth $32,000 and you can share their contact I'd be ecstatic and will gladly return the favor!

    0Reply
  • Candace Postell
    Real Estate Investor · Dayton, OH · Member since 2017 · 107 posts · 51 votes
    9y

    @Raeshelle Cooke I feel you on every level!! As I had a dream when I was about 22 ,and saved my way to 3 properties owned free and clear by the time I was 27. First thing I would suggest is to save. If your goal is 25k in three years you WILL have it by any means. Continue to educate, start analyzing deals now, attend local REIA meetings, and start building a team. You'll probably get funds sooner than you think. Maybe you could lear. wholesaling and do that a few times to get to 25k MUCH faster. Partnerships are great opportunities, but you must have something to bring to the deal. Consider other markets, but make sure you have good boots on ground to help you. If you have any questions you can PM me and ill be glad to discuss further. I love to see ambition

    Good luck

    3Reply
  • Jonathan RiveraPro Member
    Montclair , NJ · Member since 2016 · 15 posts · 1 vote
    9y

    FHA 203k loan

    30 year term

    Rates are still under 4%

    With a 203k loan you can get the same  rate for repairs and your mortgage.  Imagine a loan of 450k with a 203k loan at a rate of 3.8%

    Ex-2 family house at 299k

    Repairs 50k

    You still have extra money just in case something breaks down and you have entered into your first multi property.

    Since your a first time home buyer you will sometimes get first dibs especially if it's a hud owned property.  

    Good luck

    1Reply
  • Candace Postell
    Real Estate Investor · Dayton, OH · Member since 2017 · 107 posts · 51 votes
    9y
    Originally posted by @Jonathan Rivera:

    FHA 203k loan

    30 year term

    Rates are still under 4%

    With a 203k loan you can get the same  rate for repairs and your mortgage.  Imagine a loan of 450k with a 203k loan at a rate of 3.8%

    Ex-2 family house at 299k

    Repairs 50k

    You still have extra money just in case something breaks down and you have entered into your first multi property.

    Since your a first time home buyer you will sometimes get first dibs especially if it's a hud owned property.  

    Good luck

     I 2nd this. Probably one of the best strategies being a first time buyer. You can live in one half for a year, rent that side and purchase another. Repeat and continue to purchase until you get to a comfortable amount, then you can start doing bigger things, such as exchanging or saleing your existing properties to purchase one big complex. This is my plan in the next few years. You'll see bigger profit margins & you'll have many tenants under a few roofs. This will require just as much work if not less than having tenants spread out in 10 different houses on 10 different sides of town.

    1Reply
  • Ian WalshBusiness Member
    Lender · Philadelphia, PA · Member since 2016 · 2k+ posts · 1k+ votes
    9y

    Pretend you don't have the 20-25k and figure out how to make it in this business with out it.  Once you do that, you will know exactly what to do with that money.  Wholesaling is a good place to start. 

    7Reply
  • Jeff Filali
    Rental Property Investor · Broken Arrow, OK · Member since 2016 · 1k+ posts · 1k+ votes
    9y

    @Raeshelle C.  Everyone always starts off with a monthly goal in mind, that's great that you started with that.  A goal of $10K mo in 10 years is great and very doable!!  Almost everyone also says they want to start buying Multi-Units...  Don't we all...

    I was in a similar position as you when I started out as I only had $30K saved to invest.  What worked for me and I highly suggest all the time to others with less then $100K available to get started, was realizing that I needed to be growing my capital first.  I realized the "buy & hold" approach would be limiting myself to maybe 1 property with the funds I had saved, and it would take 10 years to grow my capital to be able to do a lot more.  So, instead I decided to focus all my energy on building capital rapidly by doing rehab/flips or wholesales instead.  By taking my $30K and adding in some zero interest credit cards, this allowed me to flip that $30K over and over and over again and do a lot more deals, while growing my capital rapidly.  I just finished my first 12 months of full-time in real estate, and I'm way ahead of where I would have been if I had only purchased one "buy & hold" property.

    Everyone has different opinions, and different approaches that work for them.  This worked for me.  The most important thing, is just get started and ask for help.  There's many people on BP who are more then willing to help advise you.  They helped me a lot!!

    Good luck!!  Keep Grinding!!

    4Reply
  • Shawn AckermanPro Member
    Real Estate Entrepreneur · Mid West, East Coast · Member since 2015 · 3k+ posts · 1k+ votes
    9y

    @Raeshelle C. the time is NOW!!! Who knows what 20-25K will get you in 3 years.  Get on the phone with motivated sellers and put together a seller financing deal or sub2 wherein you have to put down 1K - 3K at closing.  If you have low end properties in your market, leverage a conventional lender who will finance sub 30K properties.  The time is now!!!

    2Reply
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