First Investment Property for a beginner - Recommendations?

8 Replies

Hi B.P., I am new to real estate investing and I'm wanting recommendations of what type of property would be good for a beginner investor? I am located in Dallas, TX and currently looking around Dallas to Houston area. I am considering starting out with mobile homes to buy, hold and rent out to tenants. Do you think this is good to start out for a beginner or would you say a different property type would be better to start with? Any advice is appreciated.

If you are a first time home buyer I would consider purchasing a duplex or four unit building, living in one unit and renting out the other unit(s). This has 2 advantages. 

One is anything under 5 units and you can still qualify for low rate FHA financing and only 3% down payment, just like if you were buying a single family home. Second, have tenants pay your mortgage while you save your salary to invest in other properties. There are other advantages as well.

My advise is to Learn.Learn.Learn.  I would try to partner up with someone that knows what they are doing.  Use your money, have them manage the asset so you don't lose first time out.  I've been doing this for myself and my Investors for around 20 years and I advise first-timers not to go at it alone.  T.V makes it look easy but it's far from it.

@Ozie Jackson thank you for your advice. This is a really good suggestion. The only thing, in Dallas, TX there are not a lot of duplexes or 4-unit properties. That's why I was thinking of starting with mobile home.
@Mike Stohler thank you for your advice. I am currently learning and soaking up as much knowledge as I can. Do you have any good books/podcast/videos that are good with helping me get started with my first Investment property?