Which route is best for beginner?

Question

Hey guys new member here, I've been looking to jump into real estate investing for quite sometime now. I've listened to a lot of the BP podcasts and read the BP rental property book. Me and my brother are stuck deciding on which route to take for investing and I was hoping to get some feedback from some of the members on here. We've been thinking about getting a SFH and do the BRRRR method and scale out or jump straight into a MF. I'm curious what you guys think would be best for a beginner. We're located in the south suburbs of chicago, we have about 40k saved.

Michael Antoszek · Answer

Thanks for the response! I definitely want to take the "landlord" route and have some cashflow coming in, i'm just not sure if I want to get a single family home and rent that out to get my feet in the water or jump into a multifamily. I'm leaning more towards a single family and applying the BRRRR method and eventually scale out to multifamily when i become more experienced.

Michael Ealy · Answer

It depends on your goals and the skills you already have that could be used in real estate investing.

For example...

• If you like to analyze a lot of deals and you're good at negotiation, maybe wholesaling will work for you
• If you have an eye for design and have experience managing people, then rehabbing might work for you
• If you are very organized and detail oriented and know how to "read" people, you are assertive and you have no problem with confronting people, then maybe landlording will work for you

Also, it depends on your market too. In a hot market where the median price range homes have Days on the Market less than 30 days, rehabbing can be a good strategy. If rents are good and taxes are low in comparison, then be a landlord.