I convinced my parents to cash out their equity, I'm 22 with a Realtor license in Chicago, should I buy/ finance for a multiunit, buy a couple rental units, or flip a property? (For my first step in REI)
Keep in mind the liquid cash from the refinance after paying off the old mortgage is still $1400 a month in principle and interest.
There is no real answer for the question that you're asking. There is a multitude of ways to make money in real estate and each individual will prefer one method over another. With that said, if you're asking this question, you need to do some serious studying and learning before you proceed in any direction. Investing without intimate knowledge of and experience in the asset class, risks, and exit strategy is very risky (especially at where we are in the market cycle) and the only person whose money you should have losing more than your own is anyone else's. The good news is that the information is here and free, you just need to take advantage of it. The bad news is that you need to put in the time. After all, there is no free lunch :)
There is no real answer for the question that you're asking. There is a multitude of ways to make money in real estate and each individual will prefer one method over another. With that said, if you're asking this question, you need to do some serious studying and learning before you proceed in any direction. Investing without intimate knowledge of and experience in the asset class, risks, and exit strategy is very risky (especially at where we are in the market cycle) and the only person whose money you should have losing more than your own is anyone else's. The good news is that the information is here and free, you just need to take advantage of it. The bad news is that you need to put in the time. After all, there is no free lunch :)
Alex, I was in a similar situation after a refinance. If you are a beginner landlord, I'd recommend looking at properties with tenants already in place. Perhaps a 3 or 4 units property with some existing tenants. See if you can buy the property at a slight discount due to deferred maintenance or lack of cosmetic updates.
This deal likely won't be a home run. But buying a property with existing tenants can limit your risk. At least you'll have some cash flow from day 1.
I convinced my parents to cash out their equity, I'm 22 with a Realtor license in Chicago, should I buy/ finance for a multiunit, buy a couple rental units, or flip a property? (For my first step in REI)
My opinion, why have one strategy. You should be looking for potential flips to create more capital, while also looking for multiunits to create cash flow.
@Alex Landowski I'd like to know more about your situation. Do you currently own or rent your own residence? What are your parents expecting in terms of a return on their investment? Being that you're in real estate already, what are you passionate about? How involved do you want to be?
There's no one right answer. It's all about what you want to do.
You should look at a multi family Properties that cash flow. Buy & hold. Flipping can be risky. Maybe do brrr strategy to buy under valued multi-families