I am new to real estate and want to learn how to get started with focus on getting a rental or airbnb property. I am currently reading "How to Invest in Real Estate" which led me to this forum. Out of all the types of investing, getting a rental or airbnb property seems most appealing to me. I am also a first time buyer which I believe I can qualify for a 5% down payment (good credit).
My question is: what are some recommendations to get started in real estate focusing on getting a rental/airbnb property with having a capital cap of <$30k? What options do I have as a new investor or what alternative resources I can review? Best way to analyze a market? Finance options I can consider? How long does it take to get my ROI? and Anything that comes to mind!
Rental Property Investor · Toledo, OH · Member since 2018 · 309 posts · 264 votes
5y
Andreas, assuming you're looking to get into a deal at 5% as well as have an AirBNB, in my opinion I would say the best option is for you to househack a duplex. In order to get into a property at 5% down, you have to live there for at least 1 year. You could then AirBNB the other unit while living there. Regular conventional financing would most likely be the cheapest, assuming you have decent credit you would be looking around 3% interest, but you can reach out to a lender and get pre approved and see what they'd lend to you at.
Rental Property Investor · Toledo, OH · Member since 2018 · 309 posts · 264 votes
5y
Andreas, assuming you're looking to get into a deal at 5% as well as have an AirBNB, in my opinion I would say the best option is for you to househack a duplex. In order to get into a property at 5% down, you have to live there for at least 1 year. You could then AirBNB the other unit while living there. Regular conventional financing would most likely be the cheapest, assuming you have decent credit you would be looking around 3% interest, but you can reach out to a lender and get pre approved and see what they'd lend to you at.
Specialist · Carolina Beach, NC · Member since 2016 · 390 posts · 496 votes
5y
I would echo what @Landon Bleau said. See if you can find some sort of house hack. Either a duplex where you can live in one side or a single family home with an auxiliary dwelling unit (this is how we got started). Be warned, the word is out in many markets about house hacking small multifamily properties, so the competition to secure them is fierce!
Rental Property Investor · Arlington, TX · Member since 2016 · 706 posts · 611 votes
5y
Hello!
I love the STR/Airbnb strategy to get started. I like getting into STR's with little to no money out of pocket personally so I think the above-mentioned strategies are great. Here are a few to look at if you want to hit the ground running fast.
BRRRR (no money out of pocket if you find the right deal) House hacking (start-up costs are furnishing & down payment) Arbitrage (start-up costs are furnishing) Co-hosting (no money out of pocket)
I personally only do the BRRRR & arbitrage strategy.