Where to start investing?

Question

I live in a rural area and right now the market is hot.  I became a realtor almost a year ago to go along with my auction business.  My goal is to eventually own some rental properties.  I am absorbing and learning everything I can.  Each part of the industry is fascinating. I have trouble on figuring out what I should focus on with 50k to start investing.  Single family for appreciation, single family for a rental, duplex, fix and flip.....Where to begin the journey?  Thank you

Wes Hudson · Answer

Hello Abel,  I appreciate your reply. Multi-family seems to be the direction I am heading.  Learning all the math behind the deal makes me believe I need at least 4 doors if not 6 to make the payments and pocket some cash.

Thanks,

Wes

Ryan Cox · Answer

@Wes Hudson  Wherever you want to invest for the long term, start there today.

If you want to have 300 SFH rentals - buy a house and rent it.

If you want to flip 10 houses a month - start flipping houses.

If you want to own apartments - buy multifamily.

I think it is most important to pick a focus and then master the niche/vertical.  Having an expertise will put you in a position for long term success.

Wes Hudson · Answer

Thanks for the vote!

Abel Curiel · Answer

Hey Wes, welcome to BP!

I'd start off with a multi-family rental property. You'll have all your expenses under 1 roof and you'll have multiple tenants paying off your mortgage. With single-family rental property, you'll have to rely on just 1 source of income.

As a realtor, you can use MLS access to get to deals as soon as they hit the market or even look for off-market leads.

I'm not sure what your living situation is like but you also have the option of house-hacking a multi-family property. This will allow you to get your investing career started with a low down payment, lower your current living expenses (or live for free!), gain property management experience AND gain acquisition experience!

Best of luck to you!

-Abel