Advice on Which Direction (1st REI)

[Justin Rector]

Hey guys! Looking for some advice on starting out. This will be my first Real Estate investment. I currently live in Jacksonville, FL and will be moving back to my home state of Indiana here in 3-4 months. I will be in the Indianapolis area. I currently have $25k saved up and by the time we are back I should be around $35k. Knowing what you know now, if you were me would you.. A. Look into flipping a home to build up some more cash.. B. Keep saving money from my W2 (Approx. $2-3k a month saved).. C. Buy a Triplex/4Plex for the instant Cash Flow.. or D. BRRRR now...

So my RE goals are too be able to live off of Passive Income ($8-10k monthly) within next 5-10yrs. I am starting to lean more towards building a MFR Portfolio opposed to a bunch of SFR's. I have done enough reading and I am consistently listening to podcasts and reading the forums that it's time for me to take action and get into it! I am just looking for a little guidance from some of you who are more experienced and can lead me a bit! Thank you all very much!

[Aaron W.]

@Justin Rector Welcome to the community! I think you will get a different answer from every investor you ask this question to. For me, I would start now to buy BRRRR properties while still working and have W2 income to show the banks. By relying solely on rental income for real estate investment, it may make it more difficult to get financing. Not impossible but it adds wrinkles in the lending process. When banks see W2 income, it helps them have the confidence that you have the means to pay them back with "stable" income. This can all change, depending on the state of the economy.

BRRRR is going to get you the best bang for your buck in the long run. As you have a 5-10 year goal, the BRRRR should be stabilized and cash flowing by the time you are ready to live off the cash flow.

There are ways to purchase properties with little to no money whether through hard money, private money, partnerships, or investors. I would not allow lack of funds to stop you on your real estate journey. Focus on finding the great deals and you will find the financing.

Good luck!