What deals/ prop types should I be looking for?

[Stephanie Fritz]

Hi all,

I'm a brand new prospective real estate investor. Caught the bug and have been listening and reading all I can, but haven't pulled the trigger. Primary problem is liquidity. What do you recommend for a newbie with no proven track record and low cash?

The plan at the moment is to buy a foreclosure and fix it up to LIVE in it, and then rent my current house (an 800sq ft single family in Bristol, CT). Is that going to be my best foot in the door to starting this journey? Did anyone out there start with very little money? What did you do?

Thank you all so much in advance!

[Shayan S.]

Hey Stephanie, 

From what I've read newbies shouldn't really buy a foreclosure as their first property unless they really know what they're doing or can partner with someone who has experience. Have you considered house hacking? Perhaps you could look into the idea of selling your home and purchasing a duplex, triplex, or 4plex that has some cosmetic issues at a discount. You could then fix it up a bit, live in one unit, and rent out the rest. Also if you have significant equity in the property, you could cash out refinance and purchase the next property. Good Luck!