I'm new to real estate investing. I have $15,000 to work with.

7 Replies

Hey, @Charles Lewis Pinto !  Good idea.  Do you own a home yet?  If you have a solid job on the west side, it could be that your strongest strategy might be best served by starting your investing there, where the leveraging might be much more powerful for the moment than in MT, particularly because your leveraging power as owner occupant can be the best of all leverage.  

Yes, House Hacking!! If you haven’t heard of that yet go back and listen to as many BP podcasts as you can!

Best option:  (I know it’s not single family, but it’s a super fast way to grow your equity AND passive income) buy a multi family (2,3, or 4 plex) as an owner occupant, live in it for the obligatory year, then buy another, until you just have to have your own house.  By then, if you’ve done it right your cash flow and equity should be good enough to make the jump to Montana.

Option 2: owner occupy a single family or condo (all of these options , including multi family) can usually be done with a low down payment FHA loan which also allows gift funds if you need and can get help From a family member) — depending on where you are in the Seattle area, your appreciation might be strong enough in a couple of years to borrow against (or sell) and begin stretching out a bit.

Then it’s all about finding an excellent property manager in MT, and if you can’t find one where you want, look somewhere else!  Management is super key to success in long distance investment.  Way more important than the property or anything else!

Good luck!

Unfortunately, I don't own my own home here. The prices seem impossible to scrape up the cash for. And I'm not so sure I want to live here too much longer, anyhow. But in Montana, I can make the 20% down I'd need. I think I have a good property manager in the town I'm looking closest at. But I'm still looking around the south sound area for the unicorn of an affordable duplex or triplex. I'd like to talk more with you.

Hi Charles,

I like @Alan Brown 's suggestion of house hacking. If you are not planning on staying in Seattle, you should look into the option in the area you want to move to. You don't have to have 20% down if it is owner-occupied; you may have to pay PMI but build that into your costs when looking at the deal.

Regardless of whether you want to house hack or not, I would recommend getting into the habit of analyzing deals.  Pick out your target market (it sounds like Montana, but you may want to narrow it down further).  Look at major employers, economic trends, etc.  Then just run numbers on a number of houses until you become good at it.