Best way to acquire first property? Have Financial Help.

4 Replies

Hey guys,

I'm 21 years old and looking to get into Real Estate Investing, along with the help (and behest) of my Father. Essentially, we're looking at this as a potential family business and as a way for him to Invest that will give a better return than traditional Index funds.

My Father is completely debt-free and makes 200k a year in California as a Dentist. His Bank was sending him pre-approval letters for Home Loans of up to $1,000,000 about a year ago. Don't know how accurate that stuff is though.

Currently, I'm living at our family's old house in a very low COL area in the Southeast, while also taking Online Classes toward a Bachelor's in HR Management. The Tax Value of the house is about 90k. I've been "renting" it out to friends somewhat under-the-table for the past year due to being a Landlording Newbie, but I'm going to go on the books ASAP.

I'm hoping to make the most of my situation and the amount of free time I currently have, but I'm a bit overwhelmed by the amount of options available.

So far, I've narrowed it down to--

-Utilize the "Kiddie Condo Loan" on a well-priced property (Multi-Family?) and have my Dad co-sign while I finish School.

-Attempt to try the BRRRR Method and accumulate a small portfolio, focusing on "Safe Bets" (A or B Properties in decent neighborhoods.) Go from there.

-Find a high-valued property and utilize the 2 YR/No Taxes/Live-In Flip thing? I'm not sure of the details of this, but it seems like it could be very profitable, numbers wise.

-Utilize the 401k Real Estate Investing plan (Using my Father's 401k) and just build the Portfolio that way. Not sure of the details of this either. But seems like it'd save a lot of money.

I plan on finding a Mentor ASAP and I also plan on attending the local REIA meetings. However, what would you recommend as the lowest risk way for a newbie like myself to start? Ultimately, our goal with this project is to acquire Low Stress Passive Income.

TLDR: Me and Dad want to try a hand at Real Estate Investing. What's the best/safest way to get started? Leaning toward the "Kiddie Condo" FHA Loan right now.

Have you thought about using a turn-key company?

All of those options sound good. I would go with the BRRRR method if you can find a good deal. Maybe try to BRRRR a multifamily that will give you high cash flow in the end.

Originally posted by @Soh Tanaka :

Have you thought about using a turn-key company?

Yes, actually. Don't know where to start looking though. Or who to trust when it comes to the reviews I see, y'know?

Originally posted by @Kerry Mertz :

All of those options sound good. I would go with the BRRRR method if you can find a good deal. Maybe try to BRRRR a multifamily that will give you high cash flow in the end.

Thanks for the advice. Seems like it'd be tough to find in today's market, I better get looking! haha

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