Looking for some help on where to begin!

4 Replies

Hello BP Investors, my name is Daniel Frantz, I am 23 years old and a Colorado Native looking to get started with real estate investing. Before I dive into everything I would like to get some insight from people that have been around the block a time or two. I don't really know where to begin but I'm in a position to make some moves but I don't want to make the wrong moves. I bought my first house last year that I'm currently living in now but I have three roommates that are essentially paying for it! I have become completely debt free (besides the house obviously) and I make about 130k a year. I want to start creating passive income now but I need help! Where is a good starting point for me to lean towards? 

Originally posted by @Daniel Frantz :

Hello BP Investors, my name is Daniel Frantz, I am 23 years old and a Colorado Native looking to get started with real estate investing. Before I dive into everything I would like to get some insight from people that have been around the block a time or two. I don't really know where to begin but I'm in a position to make some moves but I don't want to make the wrong moves. I bought my first house last year that I'm currently living in now but I have three roommates that are essentially paying for it! I have become completely debt free (besides the house obviously) and I make about 130k a year. I want to start creating passive income now but I need help! Where is a good starting point for me to lean towards? 

 Sounds like you have a tax problem. You need a good rental and someone to show you how to do that. 

@Daniel Frantz I know the feeling of not wanting to make a mistake. It can be terrifying to think that one wrong move can really make us lose alot of money.

The way you can best create a return on your money would be to BRRRR after you start saving from your job (or partner with someone with cash, or use a hard money lender).

Its highest risk, but the highest reward. Now, if you are looking for something less risky, you can house hack again!

@Daniel Frantz it sounds like you've already started on the right path. You could do a couple things. Depending on the current value of your single family house you could take a HELOC out and use that as a down payment on your next property. My recommendation is you should look for a BRRRR for your next investment. So learn everything you can about BRRRR'ing. I run my BRRRR numbers the same way as if I was to 'flip' the house. There is also a great calculator on here you can use for reference.

You should BRRRR your next property because you can reuse that initial capital again. Another option is... Depending on your living situation if you have a significant other... you could have them use a low down loan like you did and buy a Multi family house and do another house hack. Essentially you would be living for free and can rent out that other spot in your current house and cash flow. Use that additional cash flow money to invest in other properties.