$20k to Invest: Is That Enough??

Question

Hello BP,

Is $20k enough to get started in real estate investment?

If so, then in what capacity or form?

I live in LA,CA and feel $20k is not enough for most REI stategies but I'm not sure, which is the reason for this post.

I would love to get the most return that $20k would allow.

I am open to all suggestions and will do my research on which ever method I choose before jumping into it.

Thanks in advance.

Anthony Johnson · Answer

Curt,

Disregard the last post.  I just visited your website and seen that it ansewed my questions.  It is very imformative.

Thanks again.

Curt Davis · Answer

On average a home that sells for $70,000 will rent in the $800 range +/-.

Let me know if I can help!

Anthony Johnson · Answer

Curt,

Thanks for the suggestions.  I see you own or work for a turnkey company.  I will look it up and get more information on the subject.  Question, how huch rent/profit will a $70k home bring home?

Curt Davis · Answer

You could purchase a property from someone in one of the midwest type markets using a 20% down conventional purchase model.  If estimating about $5,000 on the high side for total closing costs you can purchase up to about $70,000.  This should not be difficult to find especially from as many property providers here on BP.

You could lend the money out to someone in the form of construction repairs.  The issue you will have is you would be in a 2nd lien position and most lenders wont make a loan if that is the case but you have only a small amount.

Good luck