First potential investment property

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Hi 
My name is Solome from South Carolina. After much contemplation, I’ve decided to step out, take a leap of faith and take control of my own financial destiny.

 I’ve been reading the books, listening to pod casts from BiggerPockets. They’ve been great!

So now I’m going to plunge into my first investment. One of the many things I’ve learned from BiggerPockets is to have a plan, type of investments you want to invest in, rental or flip...etc.

I’m sure I want to, ultimately, concentrate on rental properties, doing a mixture of single and multiple family homes. Is that a good idea? Or focus on one?

In reference to this house I'm about to look at, I'll be using a private lender, who happens to be my sister this go around. What I'm having problem deciding is should I flip this house? I haven't worked out all the numbers yet, yes, learned that from BiggerPockets too, but I do know it's value after repairs will be significantly higher.

So if I flipped, I could immediately pay my lender back and reinvest my earnings into the next property.

If I rent it out, then she doesn’t get her money back immediately but I’ll have a rental property.

I really want to return her investment funds plus, immediately but I also think keeping that property will be a great income in the long haul.

Advice???

Solome

Congratulations on taking the leap toward financial independence!

It sounds like you have a nice bucket of capital to pull from to get started, which is great. Still, you seem to be getting stuck in wanting to be on chapter 20 before you even opened the book.

Fix-and-flip and wholesaling are great strategies when you're starting out. They help you establish your bankroll and teach important lessons about building relationships and evaluating deals.

You may be thinking, "It was so hard to find this first deal. I should hang on to it because I don't know where the next one will come from."

This is called a fixed mindset. You need to get to a growth mindset.

"It was hard to find this first deal. I'll learn from this experience, make some new connections, and next one will be that much easier to spot."

Good deals are more abundant than you think, but it takes work.

In this case, I would flip or wholesale the first few to build relationship and deal capital. You'll eventually get to a point that you don't need your sister's loan. (Note: even when you get to that point, consider using that source of capital along with yours to do more or bigger deals.)

Hope this helps. DM me if you want to discuss further/have other questions.

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