Advice for Investors that are beginners
Back with another morning post:
I have quite a few beginning investors that I work who are looking to get started in the Atlanta market. My best advice to them is begin with doing quick flips that just need a good TLC. I don't recommend just starting out buying rentals unless its commercial. I believe that it is good as a beginner to get a flip here and there to build capital. Therefore, opening up more doors for opportunities. I would like to hear everyone else opinion in this matter. Would you recommend a beginner to flip or hold? Keep in mind Atlanta is projected to have its population grow by 25% by 2030 according to this one article I read up on that had strong references. I'll share the link below.
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Most Popular Reply
Hey @Quinton Phillips, it really depends on the person and their comfort level for a first deal. I agree with you that flips in the beginning can be a way for new investors to build more capital, but it also requires capital upfront, potentially more than house-hacking. Also, in my opinion, there are a lot of complexities and intricacies to a flip that might be discouraging and difficult for a first-time investor to deal with like building and sticking to a budget, managing contractors, knowing rehab costs, knowing ARVs, and so on. I think getting started with a buy-and-hold is a better way for new investors as they get their feet wet managing a property over time, which lets them get exposed to all of those various factors I mentioned above, but at a slower and more comfortable pace than a quick flip.