Should I just jump in?

Question

The water isn't right, its a little too cold, but should I just jump in, and make my first investment, even if it isn't the smartest?

I figure to overcome fear, and actually see that REI'ing isn't as scary or intimidating as it seems, I actually need to buy that first property. With no money for a down payment, how do I do that though? Maybe someone here who has had a similar experience in their journey can shine some light on the scenario, keeping in mind the following:

- I want to do multi-family, probably start with either a duplex or triplex. Whichever is ripe for the picking.

- Let's say I want to, for example, choose a market that is hot like Boulder. If I were to stay close to a college location though, I would want to stay around CSU.

I probably would not be able to find anything, I am guessing, under the $!00,000 mark, that would not require new flooring, painting, etc. That's not including the possibility of value adding on a property. So, let's keep that price bracket in mind.

Christian Bors · Answer

Do your research, don't just buy something for the sake of it.  Since its your first investment, understand it doesn't need to be a home run.  Just don't strike out.  For example, my first deal was so so.  It was an on market deal.  I basically paid full retail price. Comparing it to my requirements today, I wouldn't have purchased it.  With that being said, it wasn't a horrible deal.  The property was a 3 unit building.  I lived in 1 unit and rented the other two.  Units 1 and 2 rented for a total of 1400 a month.  My PITI was 1100 a month, so I basically lived for free.  Like I said, the property wasn't a home run but it was a solid FIRST investment.  I still have that property today and it continues to cash flow quite nicely.

Hope this helps!

CB