Getting started in REI

[Anne H. Barrett]

Good afternoon, 

I am trying to get started in REI. I read the "How to Invest in Real Estate" excellent book by Joshua Dorkin and Brandon Turner, but I feel like I just drank from a fire hydrant, and I have many questions. House flipping is very difficult here with very few affordable distressed properties to flip. I need some monthly business income, so I am thinking I have to find a property to rent even though I am not wild about dealing with tenants. STRs first sounded like a great option, but upon further look, it may not be so easy to make a profit out of them due to the currently high purchase prices, the maintenance and property management fees, and especially in some locations where the local governments charge high taxes and business licenses costs. Any words of wisdom on that would help a lot. I am thus looking at maybe buying a single-family house or small multifamily property.

Additionally, I would like to know if it is possible to transfer whatever property I purchase to my LLC since it seems to be difficult for a LLC to obtain a mortgage, but I need the LLC to own and manage the rental for liability protection.

Finally, I am thinking of investing in land later on, but I have zero knowledge on how to go about it.

Thank you for any help and advice you can provide,

V/R

Anne 

[Melissa Justice]

@Anne H. Barrett,

Hi Anne! It sounds like you’ve done a great job learning the fundamentals and are now trying to figure out the practical side of getting started - totally normal to feel like you’re drinking from a fire hydrant at first!

You’re correct that in many markets, flipping is tough unless you find distressed properties at a steep discount, and STRs can be tricky because of high acquisition costs, management headaches, and local regulations. For a first investment, a long-term rental (single-family or small multifamily) is often the easiest way to get cash flow without as much day-to-day stress.

Regarding LLC ownership, you're right that most lenders won't issue a mortgage directly to a new LLC. The typical approach is:

Purchase the property in your personal name with financing.
After closing, quit-claim the property into your LLC.

You’ll need a lender who allows an inter-company transfer or “assignment of deed,” and you may have to refinance if required by the lender’s terms. It’s important to check with your attorney and accountant about taxes and liability when doing this.

As for land investing, it’s a completely different animal. Key things to learn: zoning, utilities, water rights, access, and development potential. Many beginners start small - buying land for long-term appreciation or future development - but it’s usually more passive than residential rentals.

If I were in your shoes starting out, I’d focus first on cash-flowing turnkey rental properties in markets with affordability and tenant demand, which can give you experience managing properties and generating income, while keeping your future options open for LLC ownership and land investing.

Always happy to share more about what's worked for other investors. Best of luck!