What would your first deal be?

Question

Hello all. I’m new to real estate investing and am trying to learn as much as I can. With that being said what would your first real estate deal be in today’s market and why?

Chris Seveney · Answer

Fundamentals - buy a rental in a good market and good area, it may not have greatest cashflow but over long haul you should do ok. I would not force anything and make sure you follow the simple guidelines of investing - location location.

Drew Sygit · Answer

Target a Class B SFR rental and don't try to buy an odd property.

You'll have enough of a challenge learning the basics and won't need to layer other issues on top!

William Thompson · Answer

Great question — and welcome to the journey!

If I were starting fresh in today’s market, I’d look for a small multifamily (duplex or triplex) in a stable area where rents cover expenses and then some. It’s a manageable first step that teaches you everything about cash flow, tenants, financing, and taxes — without being overwhelming.

From a tax strategist’s view, it also gives you depreciation benefits, potential cost segregation opportunities down the line, and a structure you can scale from.

How are you leaning so far — more toward something buy-and-hold, or a value-add/flip type deal?

Jimmy Lieu · Answer

Hey Matt, welcome to BP! That’s a great question and honestly a smart one to ask before jumping in. If I were starting out today, I’d personally look for a simple long-term rental in a solid, growing market where numbers actually work. For example, I moved from Portland to Columbus, Ohio in 2020 to invest and now own 10+ rentals here because the fundamentals are so strong—lots of job growth, population growth, and major companies moving in like Intel, Amazon, Google, and Honda. You can still find deals in the $120K–180K range that hit the 1% rule and cash flow from day one, which is getting harder to find in a lot of other metros. For a first deal, something low maintenance in a landlord-friendly area with good appreciation potential sets a really strong foundation to build on. Happy to connect and answer any questions you have!

Moe Sidd · Answer

@Matt Settle definitely something turnkey for a first deal to get the hang of things and not get burned out with the rehab. Also in a good neighborhood with strong rental demand with good people to work with (contractors, agents, PMs) etc. Happy to dive more into specific markets I operate in if you're trying to hone it down to which city!

Todd Anderson · Answer

@Matt Settle,

When I talk to investors looking to start today, primarily OOS investors, I recommend something totally different.

I have lately found that Build to Rent for out of state investing has many more advantages for the investor.  First off,  you get to start with a property that is new, has a warranty, and should require much less maintenance.  There is also a situation now that new construction,on average,  is now on average less than existing homes.  Most importantly new construction can offer incentives that can solve for the problems investors are having in today's market.  The builders that I have worked with are offering free property management and rate buydowns as low as 3.75%. With this type of incentive you can find cash flow.

These are properties that we find also get rented faster and for longer, because they are new. When you can find properties like this in markets that are growing in both population and employment, then you have the opportunity to get in the way of appreciation.

I would suggest to any new investor that i talk with to look into Build to Rent.  It may be something that works for you.

Let me know if i can answer more specific questions.

Best of luck.

Kerlous Tadres · Answer

For my first deal, I would buy a house-hack if you can. This will help you get started investing and live on one side and rent out the other side. You want to be able to learn as much as possible without putting a lot of money down on your first property. If this is not an option, then I would start finding a property that can be a great long-term investment for you

Melissa Justice · Answer

@Matt Settle - great question for all newbies as they tend to overcomplicate things and there is A LOT of info out there to digest and it can sometimes be overload.

If I were starting fresh today, my first deal would be a cash-flowing (not necessarily anything crazy) turnkey single-family home in a landlord-friendly, affordable market - somewhere in the Midwest or Southeast (think Birmingham, Georgia, TX, TN, OH or OK).

Here’s why:

• Lower entry prices mean you can get in with less capital and less risk.
• Strong rent-to-price ratios make it easier to hit positive cash flow from day one.
• Turnkey properties let you start "earning while you’re learning" without needing to manage a full rehab or local tenants yourself.
• Builder and seller incentives help as well which are customary when you are shopping in this arena - things like concessions towards rate buy downs, cash back post closing, etc.

Focus on markets where the numbers actually work - not just where you live. Build a solid base of cash flow, then scale up from there.

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

Caleb Brown · Answer

If I had to rewind I would house hack. 2-4 units. Still a great place to start

Zeke Liston · Answer

Hi Matt, house hacking is a great first deal. You can live in one unit and rent out the other side to help cover your mortgage. It’s a smart way to build equity while getting hands-on experience. Another good option is a turnkey property or one that only needs minor touch-ups, so you can start renting it out quickly and learn the basics of property management along the way.

What would your first deal be?

Most Popular Reply