New to Real Estate Investing: Advice on Next Steps for Cash Flow and Business Setup

[Tiarra Delaney]

Hi BiggerPockets community,

I’m new to real estate investing and excited to learn! I currently own one property, and I’m planning to purchase another. I’m trying to decide whether to rent out my current home or the new property I purchase. My overall goal is to generate monthly cash flow, and my current property might be a better rental option since it has equity.

I’m also considering starting a business and purchasing the next property in the business’s name. I’ve heard this can have benefits, but I’m not sure where to start.

If anyone has advice on how to proceed, I’d love to hear it! Are there strategies, financing tips, or resources you’d recommend for someone in my position?

Thanks so much for your help!

[Jaycee Greene]

Quote from @Tiarra Delaney:

Quote from :

Quote from :

Hi BiggerPockets community,

I’m new to real estate investing and excited to learn! I currently own one property, and I’m planning to purchase another. I’m trying to decide whether to rent out my current home or the new property I purchase. My overall goal is to generate monthly cash flow, and my current property might be a better rental option since it has equity.

I’m also considering starting a business and purchasing the next property in the business’s name. I’ve heard this can have benefits, but I’m not sure where to start.

If anyone has advice on how to proceed, I’d love to hear it! Are there strategies, financing tips, or resources you’d recommend for someone in my position?

Thanks so much for your help!

Hi @Tiarra Delaney, welcome to the BP Forum! Where are you looking to acquire your next property? And what type are looking to buy, SF, 2-4 MF, or 5+ MF? 

Do you have a price range and are you looking for turn-key properties or something along the lines of a "fixer upper"? Are you open to house hacking for this 2nd property?

As for starting a business, are you looking to start a "real estate" business or "non-real estate" business? The reason I ask is if you're starting a "non-real estate" business, I'd recommend NOT using that business to buy any properties but use a real estate specific LLC to acquire your properties. Happy to answer any questions.

Hi @Jaycee Greene, thanks for your response. It helped me to do more research and better understand that I’d like to buy property elsewhere and rent that out, rather than renting my current property. Initially, I was considering properties in Prince George's County, MD, or the DMV area. However, after further research, I’ve noticed that Charlotte, NC, and Raleigh-Durham, NC, are experiencing robust rental market growth and expanding economic opportunities. I’m open to exploring those locations since they aren’t too far of a drive.

I’m leaning towards a SF property because I have $10,000 to put down, want to stay within my budget, and being new to this, I’d like to start small. For the property I purchase, I’d like to keep my monthly mortgage payments at $2,000 or less.

I prefer a turn-key property since this is my first rental, and I want to start generating monthly cash flow immediately without the delay of repairs or managing two mortgages. As for the business, I'm starting a real estate business, and my goal is to acquire properties under an LLC specifically for real estate investments.

@Tiarra Delaney I think the only way you'll be able to purchase a turn-key property as you describe with $10k is to house hack. Most non-FHA loans will require at least 15% down but you'll have to have amazing credit. Short of that, it'll more than likely it'll be closer to 20%. There may be some HMLs that comment as to their opinions.