Advice on first investment property.
Hello all,
I am trying to determine my first move whether that will be a Multi Family house hack in the Chicago area or a small house flip at first to accumulate some capital. I would need some time to accumulate a downpayment for the multi family or my other option would be to partner with someone and do a house flip to get into the business. I have listened to almost all the podcast on BP and read many of the BP books and so I know both options can work. I am interested in hearing what you all may think may be the best option for me and why. Thank you all in advance.
Most Popular Reply
Hi Phillip,
This is a question that may real estate beginners ask. Obviously there is no right or wrong answer. Only you can decide what is best for you depending on you goals, lifestyle, risk tolerance, timeline, profession, capital situation, credit history, skills, education, personality, etc. etc..... so many variables.
I started by buying a cheap duplex and doing some light fixing/improving. I rented it out and realized immediate cash flow and equity. I was fortunate to start in 2012 when prices were low and the economy was on the way up. I have 30 units now. Things are different in these times. I feel like there is less room for error in this market. If you can afford it, I would buy a value-add duplex or fourplex. But that's just my style/preference....
Good luck!