I'm confused about some things..I definitely want to invest in rental properties for sure, for cash flow and appreciations. I'm trying to find some triplex and fourplex deals but having issues at the moment. Should I look into doing a couple of flips in the meantime using hard money to build up some money. Or should I be patient, keep looking save about 15k and get my 4plex using FHA?
It's hard to suggest what to do because at the end of the day many things in real estate are situational based because everyone has different goals as well as different strengths and weaknesses. What works for someone, might not work for you and vice versa.
If your long term goal is looking to acquire rentals though, search this site for information on the BRRRR method. In short, it's kind of a mixture between flipping and rentals. You'll be capturing the forced equity of a flip but having all the perks of owning a rental. If done correctly, you'll have a cash flowing rental with little to no money into the deal.
At the end of the day, don't rush into anything and overpay just to say you have rental. Be patient, make sure its a great deal and remember numbers don't lie!
@Christopher Giannino Thanks for that insight. I think I'm going to look into the BRRRR strategy. I hope this strategy still works.
One good strategy for building up rentals it flip and hold strategy; flip one for money to live off of, flip a second for a down payment and then buy and hold the third, then repeat. Of course, it's not quite that pretty, but overall it works. I talk about it here more: https://www.biggerpockets.com/renewsblog/2014/10/29/the-ultimate-list-of-ways-to-finance-buy-and-hold-property/
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing