Advice for new investors

9 Replies

Me and my wife are going to get in to RE investing but we are completely new to this. Our goal is to grow our portfolio to the point where we can live off the income our properties bring in. But like most things the 1st step is the hardest so far. I’m open to learning any other starting strategies you guys know. I’ve been doing a ton of research and I love learning this stuff but I’m to the point where I’m ready to take action but I have no idea where or how to start. So far I’m considering either starting with wholesale or a house hack or both. I’m looking for advice and tips on starting out and would love to read what’s the first thing you guys did when you started investing? Thanks in advance and continued success to you all. Take care.

It's great that you've clearly identified what your goal is, owning cash flowing real estate that pays for your lifestyle. Identifying your goal is step 1 - so great job! You're already on your way.

Getting out into your market and networking locally is a great second step. You can meet successful investors in your market and learn about what they're doing, learn what they think of your market, and generally expand your mind.

House hacking is a great way to get started. Have you learned how to run numbers?

@Taylor L. Thanks for the reply, I didn’t think that having an overall goal as the first step taken. That’s really encouraging to read and it just pushed my drive even more so thanks for that. I’ll definitely take your advice and start networking with local investor and learning my markets more. As far as running number for a house hack I’ve come across it a little in my research but I’m still not sure how it works, I just know the numbers have to make sense, but I don’t know how to run them if I find a potential hack property. Would you be able to give an example of running numbers or if point me to a resource. Thanks again.

I agree you should start with some type of goal of what you want to achieve.

Do you want to quit your job and have your income slowly be from real estate?

Are you looking to make some extra money on the side while working full time?

Are you trying to build something for retirement?

Each of those will have a different number you have in mind for how you proceed.  

Now I strongly suggest you sit down and think these over.  Once you have decided the why and set some goals then you can figure out the how.  For me once I figured out the why I sat down with an excel spreadsheet and made a simple formula calculating how many properties I would need at 250, 300 and 400 per month cash flow.  That really help set the wheels in motion for me and gave me a clearer understanding of what I am reaching for to meet those goals.

@Devin Knight   Hi Devin, I would HIGHLY recommend house-hacking. It's such a powerful way to get started in real estate and creates significant freedom as you can eliminate your living expense. Do you currently own or rent?

@Brent Paul thanks for the reply and my answer is yes to all the questions in your post. The ultimate goal will be to grow my portfolio to the point where we can quit the 9-5 and live off the real estate assets. I’ll definitely take your advice and get more detail with my goals to have a clearer plan of action. Thanks again.

@Daniel Haberkost Hi Daniel, thanks for the reply. I’m really leaning towards a house hack to start off so thanks for the encouraging words. We are currently renting but will be making our first purchase soon. Just looking for the right house hack situation. Do you or did you house hack? If so any tips? Thanks again

@Devin Knight

Yes I currently house-hack a 4 bed 3 bath home and it's been very financially liberating. As far as tips the main thing that comes to mind is be sure to screen your tenants thoroughly! Don't compromise on your standards. Run their background, verify their income, make sure their income is 3 times rent, call their previous landlords, etc.