Where to start investing in real estate?

Question

What is a reasonable amount of cash to start with? I have around $30k, I want to get into real estate, but not sure where to start or what to do with this amount. Down payment? Rehab? Partnership? What would be a realistic starting point?

Bjorik Mutize · Answer

@Alvaro Rodriguez you have a good amount of capital. However it seems as if you are still iffy on your desired goals for what area of REI you want to get in based on the previous responses.

I’d take some time whether it be a few months or so to get educated with some of the recommended books on the forums and also read some of the common strategies that have proven to work well with beginners, while building your capital even further. Go to some local meetups to get a network circle of advisors and others that can give you some ideas!

One strategy I would recommend looking up is BRRRR. Might catch your eye!

Antoine Martel · Answer

Seems like a pretty good deal if you can get that rental amount.

Alvaro Rodriguez · Answer

@Antoine Martel that’s included in the monthly payment. The real number is $1487. With insurance also.

Antoine Martel · Answer

How about insurance?

Alvaro Rodriguez · Answer

@Antoine Martel interest on the rest of the mortgage is 4.475. Monthly payment with HOA and annual tax is $1500. I looked around and the range of houses getting rent in the same block or area go from $1800-$2200. Are these numbers ok numbers? I’m new at this so I was looking to see what makes more sense. Thanks for the feedback

Antoine Martel · Answer

Sure. If you want to move and want to live in it. And if its going to make a good return after you move out. But a $200k house is not going to have a good cash flow if you were to rent it out. The price is too high.

Alvaro Rodriguez · Answer

@Antoine Martel what about use it as down payment for a house. Move in for a year and then rent it afterwards. I had  a $200k new construction house in mind that I saw over the weekend.

Antoine Martel · Answer

With $30k, that is just enough to buy a rental property out of state in some affordable markets like Memphis and Cleveland. Other than that, $30k isn't enough to do a BRRR or a rehab unless you want to take on hard money.

Where to start investing in real estate?

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