Start Up Finances for First Property

3 Replies

I know that most people say you don't need a lot of money to start up investing in real estate. But I am curious to hear about how much folks saved and why that amount, before investing in their first property. 

Hey Mike,

My first deal happened with the help of my partners. It was a small SFH, we paid 37k cash. Being a college student, I could only put down 7k of it (15%). The lessons and skills I learned from the first property though, were invaluable. The cashflow is a nice bonus too.

@Mike Celli I agree with @Tue Huynh-Nhut Vo - the lessons you learn from your first deal are invaluable. 

I didn't have much cash when I bought my first deal <$5,000 but I borrowed some money from my 401k. 

I don't think you need to have a lot of money to invest but you have to have smart money habits - investing in retirement & tax advantaged accounts, budgeting, etc. 

With those skills you'll find a way to get into your first property without having 20% saved for the down payment. 

Best of luck!