$30k is plenty to get started. What type of investing are you looking to do?
I would say yes, but with some caveats. It depends on what and where you’d like to invest. Also depends on your financial standing if you are looking for traditional, hard money or private lenders.
I would say yes! Get a deal under your belt, feed off the motivation that it keeps you, and keep pushing forward!
I would re-iterate what @Gary Montgomery mentioned. I'm in fort Lauderdale and starting at with 30k would mean lower end SFH. I do have one here but also went out of state to get same type of properties for cheaper and profit the same. Read, research, go to local meetings and chat with people. You'll find out what to do. Here to help with any info or questions you may have.
I am forming a syndication group that will focus on buying apartment complexes throughout the USA. These properties will be in B or better areas and provide great NOI(s). We will focus on assets that will return our down payment (initial funds) within 2 yrs or less. If you and or someone you know interested PM me, thus I will send you an invite along with a flyer, with dates and location to meet me and the other investor. I look forward to hearing from you soon.
@Jackie Garcia No time like the present!
What kind of real estate investment strategy are you interested in executing?
You could house hack a 4plex with an FHA loan with 3.5% down.
@Jackie Garcia Hi Jackie! The answer to your question is Maybe. The first thing you need to decide is do you want in invest passively or do you want to be an active investor? If you want to be active, how much time do you have and how flexible is your current job or situation? Then you need to ask, do you want to be a landlord and start small with Single Family and grow slow or do you like another asset class: Multifamily (Apartments), Storage Units, Mobile Homes, Residential Assisted Living. You definitely have choices. If you want to be an active investor and are ok being a landlord...and decide to start with a single family rental...You are limited to the amount of money and time that you have available. If you want to hire a management company to manage a single family or even a small multifamiy, you are looking at paying them around 10% of your income. Just something to consider.
You could also consider joining a syndication (in any of these asset classes) as a passive investor or possibly as a general partner, if that is your goal. The advanctage to being a part of a syndication...is that you have the ability to be a part of a much larger investment opportunity than you would alone.
No matter what you choose to invest in, and no matter if you choose to be a passive investor or an active investor...I strongly suggest you learn about the asset type you are interested in. If it is small multifamily, large apartments (which is what we do and teach), storage units, mobile home parks, residential assisted living...Please learn what you can about the industry, basically how to analyze the deals, things to look out for, questions to ask...and ABSOLUTELY research your potential syndicators, partners, educators.
Please let me know if you have any questions. If you are interested in Mobile Home Parks or Residential Assisted Living...I can refer you to people I know investing in these.
Good Luck in making your 1st Real Estate Investment!!! This is very exciting!
Depending on what type of lending you plan on using will dictate if 30k is enough. Other main piece to the puzzle is the location of which you wish to invest and type of investing. If you are looking for a flip I would suggest finding someone to front the purchase price and you pay for the rehab. If you are looking to start a buy and hold portfolio then your options are much greater as you can finding a lending institute that will be lower interest than any other source of money. My passive portfolio is made up of 4 sfh and combined I would be hard pressed to have 20k in all of them. Reasoning is I buy them in distressed condition and rehab them to a grade "B" unit. I have a construction back ground so that saves tons on labor costs but finding a lender that will front all the funds is whats important. All my lending is based off the arv which is determined prior to the purchase via the bank I use. I use commercial funding which the terms aren't as long but I get to use the equity from each property to buy the next one. The hardest part in my opinion is that first property whether its a flip or rental. Get your feet wet and you will learn to swim. Never limit yourself to one exit strategy either.
I’m looking for a duplex or studio and or apartment to start off in south Florida because the market is tough to find good deals.
For financing I was going to take a line of credit from my house and then refinance to pay myself back. My home is paid off and it’s worth in the $500s.
I would also be open to a flip as an a option as I do love the remodeling process as my mom used to do the occasional flip.
@Jackie Garcia Hey Jackie, I think you can leverage your 30k capital if you are considering doing the heavy lighting of REInvesting yourself.
For instance, if you buy a multifamily utilizing an FHA loan, you will be surprised that your 30k can be stretched. That said, you should still spend some time content consuming, so that you become educated in real estate investing, helping to increase your confidence.
Hope this helps. Goodluck. Thanks!
More than enough. I started with $7k.
@Jackie Garcia The answer is kinda...sorta...maybe? I suppose so much of it depends on what you want to do and where you want to do it. Househacking with 3.5% down is probably the most logical way to start. It can buy you something and that "something" doesn't have to be a low-end property. If you don't want to househack then you'll be in a little bit of a pickle. Basically, $30K is a nice "in theory" number but if once you take into account that you need reserves, closing costs, a flight to visit the property (if it's out of state) before you buy, etc. you just don't have much left over for the *actual* down payment. Now if your goal is to get yourself into a $100K SFR or duplex, great! You're probably at a "startable" position when it comes to capital. But if your goal is to invest around Miami, buy a home in a real "B" area, etc. then I'd continue to save. I have never liked the idea of starting with what you don't want to get to what you do want. Well okay, I get it if your end goal is to buy a 20 unit apartment complex but not if your goal is to buy a $150K property when you only have the down payment for a $100K property. The last thing you want to do is either a.) be saddled with that $100K property you don't really want to own or b.) have to incur selling costs to get yourself out of it.
But that's just me. Plenty of people on here will tell you to just jump in, make your mistakes, learn from them, etc. They're not wrong at all, it's a viable path. I've always been on the "buy what you intend to own until you die" side of things. Might I sell? Sure. Might I 1031? Sure. But I'd never buy something that I didn't *want* to own because it was a.) a "good" deal or b.) because it's all that I could afford at the time.
Just one perspective :-)
@Jackie Garcia a fool and her money are soon parted. Pardon my directness (if that's a real word) but keep your money in the bank and get more educated first. You can start in this biz with no money and sometimes that's better b/c it forces you to only do a truly good deal.
All my best!
@Jackie Garcia Hi Jackie, for my first property I started with a duplex. I live in one side and rent out the other using a FHA loan for financing. Spent about $8k at closing.
Sounds like you may not be interested in the live-in investment property since you already own your home free and clear. It all depends on what your goals are and how much time you have to dedicate to it.
I would suggest doing some research and property analysis on how much income you'd make from a SFR, MFR, or Flip and go from there to see which best aligns with your goals.
Have you considered 'teaming-up' with other in the So. FL area to invest? Let me know.
I own 64 rentals and I’m not sure I’ve ever once had $30k in liquid cash....
Does that answer your question?
@Andrew Johnson thank you for the insight. I have a lot of research to do and maybe just keep analyzing deals until I find a gem.
Thanks everyone for all the insight
I wish I could house hack but I have a family and I think they would kill me especially my teenager who loves her own space.
Originally posted by @Jackie Garcia :
I am looking to get some advice from those of you who are already investing in property. I have saved and inherited some funds and have $30K in a savings account. My question is could I invest with just $30k or should I wait longer?
Never wait longer! It’s never the “right” time and you’ll never be “ready”. Plus, finances fly by and who knows, maybe some unforeseen circumstance will occur and in a couple years instead of saving more you’ll end up with 20k in the bank instead.
If you’re looking to flip (only because that’s what I know more about) make sure you interview tons of lenders, because quite a few will lend you money for the property AND the rehab costs. This would mean that in liquid all you would need is the down payment on the property in addition to closing costs on the purchasing side. Of course you would need all of your holding costs but I’m sure you will be reading up on that. ;)
There are SO many ways to be active in REI so definitely research as many avenues you can and see what interests you the most. You can also partner up with like-minded people if you prefer to not use a lender.
Jackie - I didn't read all the prior responses, so please pardon if my response is similar to others.
Yes, I think you have enough to start investing.
No, I don't think you should invest in a SFR, duplex, or triplex.
Returns are greater and risks are smaller when investing in medium to large multi-unit buildings. I recommend that you partner up with an experienced investor who invests in 5+ unit multifamily buildings to learn the ropes. Two reasons:
1) With the right partner, you'll earn more money than comparable, smaller properties
2) You'll learn how to buy multifamily assets which, in my opinion, have greater return potential than single family residences
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