Finding that first deal, choosing a strategy.

4 Replies

I have decided I want to buy multi family properties with the goal of building passive cash flow. I’d prefer to have a property manager from the start. I have about 15k to work with, a partner who is interested in going into a deal with me(has done one other deal) as well as 100k in an account in my name that belongs to another person(who has given me permission to borrow against, however that works). The thing I am nervous about is value add. I know that buying turn key is always an option. But is it worth it to try and do any sort of rehab work through some contractor I don’t know when I have no knowledge on rehabbing or any kind of value add whatsoever? Or is turnkey my only sensible option for my first deal?

With that kind of cash, you should try to house hack and do a conventional or FHA renovation loan to purchase the property so the out of pocket cash is minimal.

@Austin J. You're smart to question whether doing it yourself makes sense. That strategy is easier said than done for an inexperienced investor. You didn't say whether this is local or out of state which would make a big difference.

Originally posted by @Austin J. :
I have decided I want to buy multi family properties with the goal of building passive cash flow. I’d prefer to have a property manager from the start. I have about 15k to work with, a partner who is interested in going into a deal with me(has done one other deal) as well as 100k in an account in my name that belongs to another person(who has given me permission to borrow against, however that works). The thing I am nervous about is value add. I know that buying turn key is always an option. But is it worth it to try and do any sort of rehab work through some contractor I don’t know when I have no knowledge on rehabbing or any kind of value add whatsoever? Or is turnkey my only sensible option for my first deal?

Don't over complicate things. I see tons of investors think that their only options are totally destroyed homes or 100% turnkey homes. There is a middle ground my man! Find yourself an agent who works at a brokerage that does property management. Tour some houses on the MLS that are in good shape but priced well due to the fact that they are dated. Buy one of those, get it looking pretty and place a tenant.