Hello BiggerPockets family, me and my wife just started our journey into real estate investing and we're stuck! First let me give a brief background, My name is Alejandro Leon (21yrs old) and my wife Noel Leon(19yrs old) we've been researching wholesaling, fix & flips, and rental properties. We both have full time jobs & i have a Detailing business, our goal is to be able to leave our "m-f" jobs and live a happier, healthy and more financially free life. Now lets get to where we are stuck at, so far we have created our L.L.C, created our website & attended a couple seminars, done a ton of research online/ rich dad poor dad, the millionaire real estate investor, retire early with real estate just to name a few. I feel like even with everything we have done we still dont know where to "start" with the business. We are not sure if we should put all our time into wholesaling or use our saved up money and purchase a house. At the moment we haven't purchase our first house yet so we would qualify for certain programs etc. Now what we are hoping to gain from this post is some insight on what our next move should be! Thank you for taking the time out of your day to reply !
Hey @Alejandro Leon thanks for sharing your story. While you may feel stuck, it sounds like you and your wife have done a great job laying a solid foundation to build upon. Now that you have the knowledge and presumably some money to work with, the key is to pick one strategy and go all in with it (at least for now).
Here's one option for you: You already both have steady paychecks to fund your current lifestyle, so more income is not necessarily the issue right now, first you may want to focus on reducing your expenses. If you were to use the money you have saved up to purchase a house hack, you will be able to reduce your expenses, build equity and will be paying down your own mortgage rather than someone else's. In this case you will be accumulating more cash while owning an asset. From here you are in a stronger financial position which will give you options to expand be it through investing dollars into wholesaling, or a single family flip, or another house hack, or additional rental properties.
In conclusion, it seems as though reducing your living expenses first, and then focusing on increasing your active and passive income will most likely accelerate your journey the quickest while you maintain your full time jobs.
My advice to anybody starting out is just do it. Find a house to flip, find a house to rent out, start putting letters in the mail.... you get the idea. I think allot of people get stuck at your point, there's a good chance nothing is going to fall into your lap. So you have a job and I'm going to assume you don't have allot of debt so you should qualify for some first time home owner stuff. I think I would target a duplex or quad plex that needs a little fixing up. It gives you a place to live, it lets you experience the buying process, the renting process, the maintenance issues, and depending upon how much work it needs it would let you experience the flipping aspect of things. See how that goes then build from those lessons. If you live near a college I recommend buying a house near the campus. I think you get a premium from student housing and its close to recession proof. Good luck