First investment decision?

6 Replies

Hello all, Ok I am a newbie and haven’t gotten my first investment yet. I have looked at 25 houses and put several bids (unsuccessful), but nothing yet. I was looking for something under 100K to shoot for the 2% or there about rule but am having a tough time. I am only about 90 podcast deep and am wondering if this concept is still solid? I am not considering buying a investment property at 100-140ish but am worried the return will be 1-1.3% back from rent, is this still a good investment? I am in south jersey and figure a 3-4 bedrm with 1-2 bath will rent for about 1500 in my area so that where I am getting my line of thought. I am listening and reading everyday but want to get involved what is a good step besides looking on MLS and working with a Realtor to look at properties? Any advice is greatly Appreciate thank you for your time. Dave

2% rule is possible in areas, but I find those areas aren't usually the best areas as far as schools, etc. It's a tradeoff that can certainly be worth it, but as always you should know the area or work with someone that does. Consider multi-units as well if you haven't. They can give you more bang for the buck. I just went under contract with a client for a 2-unit that will bring a return around 2%. That's not always possible but it exists. It was a duplex in a decent neighborhood, $80k range  that will rent for about 1100 and 800. Needs some work, but nothing major.