New to Real Estate · Honolulu, HI · Member since 2019 · 42 posts · 16 votes
Aloha, everyone! Out of curiosity, what strategy (Fix & Flip, Rent, Wholesaling, House Hack, BRRRR, etc.) did you use when you bought your first investment property. I know there are so many variables to consider but I want to keep it as simple as possible. I am just eager to see what people usually start off with.
Real Estate Agent · Windsor Locks · Member since 2020 · 20 posts · 21 votes
5y
Hey Chase! I have not done my first deal yet but I'm am pursuing a house hacking deal, a live in flip, or possibly even a BRRRR. These types of strategies suit my current goals, lifestyle, and situation the best. House hacking at 25 with no kids is a lot easier to pull off than someone who is older, looking to settle down, and possibly has kids already.
Specialist · Baton Rouge, LA · Member since 2018 · 118 posts · 110 votes
5y
Hi @Chase Yokoyama, I started with wholesaling. Specifically, I created a website, did a direct mail campaign, learned a ton, and got a couple deals under contract. My first one I got under contract for what I thought was 10k above what my numbers said would work, and sure enough, I wasn't able to sell it, but was up front with the seller about my intentions and told him it was 10k too much but we could try it. The next one I got under contract was a deal and I sold it in two days making 5K on the assignment.
A day before closing that wholesale deal, I actually got a great deal on a fourplex and purchased that for myself using private money, which we eventually BRRRRed. Generating off market leads is huge to your success, so wholesale is good because it will force you to create those systems. Cherry pick the best ones for your portfolio, sell the rest.
Rental Property Investor · Collingswood, NJ · Member since 2016 · 282 posts · 116 votes
5y
@Jay Thomas I just started a few months ago but so far I would say the pros are I’m learning how to deal with tenants, how to handle maintenance requests, how the rehab process works, I will have more cash flow since I’m doing it ( which is good at this point in my investing because I’m focused on cash flow), and that once I do decide to hire a PM I will know what to look for. The cons would be it can sometimes be time consuming, stressful, and there’s a bit of a learning curve. I have learned a ton so far which will definitely help with future purchases.
Investor · Orefield, PA · Member since 2016 · 19 posts · 3 votes
5y
@Chase Yokoyama we bought a turnkey property for our first rental. The second was a discounted HUD home store foreclosure that we did mild renovations on. After that we were confident enough to start BRRRing. Those first two were enough to build confidence and an education.  Everyone is different but that's how we did it.
New to Real Estate · Honolulu, HI · Member since 2019 · 42 posts · 16 votes
5y
@Colin Williams I know there is a law where no more than 0.5% of the total number of dwelling units in each regional development plan area (DPA) can be used as Bed and Breakfasts. So there is a certain amount of permits given out to land lords to be able to legally rent out their properties. And you would have to apply for a license and they are given out based on a lottery system.
I don't recommend you start with what other people start with, instead pick a strategy that allows you to achieve your goals as quickly as you possibly can. Every investor here will have their own preferences!
Investor · Naples, FL · Member since 2016 · 256 posts · 75 votes
5y
When I lived in NYC I saw an ad for a lot for sale in Cape Coral, Florida. I bought it sight unseen, eventually building a rent to own house after buying 5 other lots in Cape Coral.With my contact we bought 2 lots in Kissimee and developed them rent to own. Hindsite in always 20/20, should have kept at least 3 as rentals.