How much should I spend on my first multifamily?

[Madeline O.]

A little about me

I’m 25

Income: $65,000

Debt: 0

Down Payment savings: $20k

I finally paid off all of my college loans and my car so I’m officially debt free! I’ve been studying real estate investing for the last 6 months and I’m ready but my first rental property but multifamilies in the South Florida area can go for over $400k.

What would be a good starting price range for a first property?

[Cassi Justiz]

Congratulations on paying off your debt! I think looking at a house hack is a great place to start investing. You could even house hack a cheap SFH and have roommates if those numbers worked better for you. Just make sure that you have plenty of money in reserves to make a few payments if your other units go vacant and/or cover any major repairs that pop up.

If you haven't read Scott Trench's book Set for Life, that's a great book to help get a plan in place.