I'm new to the investing world and pretty ignorant about the process. I have 25k that I would like to invest into property, however I don't know the best way to achieve my goal of making a passive income.
I'm not sure if 25k is enough to invest into the Atlanta real estate market because of the vast amount of investors in Atlanta. My question is do I have enough cash? If so what areas should I be looking into? The west side of Atlanta seem to be very extremely difficult to obtain property. Is there any other places I should be looking?
Investor · Taylor Mill, KY · Member since 2016 · 2k+ posts · 964 votes
7y
@Aaron Austin Welcome to Bp and investing in real estate! With 25k in Atlanta I would first recommend getting a 2-4 unit and living in one unit, allowing you to get conventional financing with 5% down.
If that's not an option, you'll probably only get one property out of the $25k. If that's okay with you and you find a good deal then go for it. You will be able to get another property, but you'll have to save more, you likely won't have equity to pull out for a few years.
If you can find a way to increase that $25k through flipping or lending, then you could do more buying and holding.
Investor · Taylor Mill, KY · Member since 2016 · 2k+ posts · 964 votes
7y
@Aaron Austin Welcome to Bp and investing in real estate! With 25k in Atlanta I would first recommend getting a 2-4 unit and living in one unit, allowing you to get conventional financing with 5% down.
If that's not an option, you'll probably only get one property out of the $25k. If that's okay with you and you find a good deal then go for it. You will be able to get another property, but you'll have to save more, you likely won't have equity to pull out for a few years.
If you can find a way to increase that $25k through flipping or lending, then you could do more buying and holding.
RE Investor · Newnan, GA · Member since 2015 · 309 posts · 132 votes
7y
@Aaron Austin
Agree with @Grant Rothenburger about house hacking in a multi-unit.
If you are looking for a SF rental property, you would need to find a property for 100k or less since you will need to put 20% down to obtain a loan. Make sure you can get $1,000 in rent and you will be good to go for your first property.
@Grant RothenburgerThank you so much help! I just love this website because of the cool experienced individuals that are here to help one another, especially a newbie such as my self.
@Rush Wall Rush I truly appreciate your awesome information as well!
Rental Property Investor · Nashville, TN · Member since 2017 · 38 posts · 15 votes
7y
Good job Aaron, most people have a hard time getting 5k together. The house hack is great advice. If for some reason you don't quite have enough for the down and CC, you might consider going thru a private lender first, then Refi after you own it and fix whatever needs to be done. The longer term refi will get your payment down, and go from there. But I agree with the guys above. House hack will be best for your first move. Good luck.