Seeking Wisdom: Advice Needed from Fellow Real Estate Investors Before My First Deal

[Chris Hernandez]

I’m preparing to make my first real estate investment and would appreciate your insights. Here’s my situation: I have $100,000 available for my first deal(s) and currently earn $80,000 per year from my W-2 job.   Option A: House Hack Locally (Sacramento, CA Region)   • Purchase a 3-4 bedroom home for $400,000–$500,000. • Local rents average about $800 per bedroom. • A 15–20% down payment is required, which would use up most of my capital and limit my ability to pursue additional investments in the near term.     Option B: Out-of-State Rental(s)   • Invest in markets where homes cost $200,000–$250,000, with rent-to-price ratios of 0.5% or higher. • This approach could allow me to diversify, potentially acquire multiple properties, and maintain some liquidity for future deals.   If anyone has alternative strategies or perspectives-such as creative financing, partnerships, or leveraging different real estate investment models like BRRRR or syndications-I’d love to hear your thoughts. Thank you!

[Caleb Brown]

I would start with a house hack. If you are owner occupying the down payment won't be 15-20% it'll be sub 10%. You can do room by room, 2-4 units, etc. Out of state isn't a bad option but starting local should always be your first try. Midwest is common for out of state people. Happy to chat on KC if you looked here