I have recently inherited 150k and I am interested in investing it into real estate. Though I am only 22 years old and new to this. Any recommendations on where and how to start?
BRRRR is the best strategy out their in my opinion. The boss I currently work for started with about $250,000 back in 2015 and now owns over 80 properties using that same capital recycled over and over using the Buy Rehab Rent Refi Repeat strategy for just 3 years. I don't know any other way to have the same amount of capital have as big of an impact in such a short amount of time.
I live in Miami, and I invest in Jacksonville......That amount won't get you far here. It's possible to find a deal for about 125k maybe in Broward County, but you'd have to finance the reno some other way and flip a few times to build your capital. I much prefer the BRRR method but you have to find somewhere at a lower price point.......
I would second @John Defreitas in regards to investing in Jacksonville. If you research the area I believe you will find that there are many pros for starting out there. Other Florida cities worth considering are Orlando, Tampa, and Cape Coral/Ft. Myers. These areas are projected for strong population growths as well as strong increases in home values.
@Charlotte Sellam Where/how you invest this money in RE depends on what your ultimate goal is at the end of the day. Have you considered what your goal is? Also, what type of asset class you want acquire?
1. Congratulations on the money, at your young age you have an advantage over many.
2. You've come to the right place, lots of savvy people here to learn from. My STRONG suggestion is that you spend the next few months reading and listening to podcasts. It's better to have ideas of what interests you in RE and how to safely invest than it is to hurriedly throw your money out there and risk losing it. Real estate isn't going away, be patient.
3. You are unfortunately located in possibly the highest fraud area in the US as far as real estate transactions go. South Florida is the "Wild West of RE" (I should TM that term). After nearly 14 years in Miami-Dade and Broward, I just moved a few hours north. So watch your back.
4. While there IS opportunity to make money where you are, as one poster mentioned above, you should consider less costly areas such as Jax. I will add Tampa and Orlando. I am in Brevard and there's opportunity here too.
5. @Joseph Back mentioned BRRRR. If you picked up a duplex using hard/private money, updating it and refinancing into traditional financing, that would be a great start and you'd have most of your money (if not all) in your pocket. Either way, learn learn learn.....then make your moves.
@Charlotte Sellam I think the best place to start is with education. Figure out what asset class your attracted to and model of investing and become an expert in it. The first big choice is to determine if you want to be passive or active. From there your able to determine what size deal you can take down or be apart of.
Have you purchased a primary residence yet? You could always consider purchasing a multi-family primary residence and let the rental income pay most or all of your mortgage. It gets you experience with becoming a landlord. I started out this way as well.