I have $ 4000, Can I get into real estate?

General Real Estate Investing
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I have $ 4000, Can I get into real estate?

Helen Hernandez
Denver, CO · Member since 2020 · 6 posts · 4 votes

My husband and I would like to get started in Real Estate. We are slowly saving money and have $4000. We’d like to know which strategy could be better to start. Our future goal is to have cash flow income but we heard and read that at the beginning we might need a quick income to supplement our savings first. We are getting kind of confused about how to start and we would appreciate anything you could advise us. We are in Colorado.

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Account Closed
Investor · Phoenix, AZ · Member since 2018 · 420 posts · 388 votes
6y

@Helen Hernandez 4 years ago I combined my $10k with $5k that my brother had to buy our first house hack. Today we have over $1M in rental properties as partners. The best advice I can give you is to just get started.

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  • Bill Goodland
    Rental Property Investor · Allentown PA, United States · Member since 2016 · 567 posts · 442 votes
    6y

    @Helen Hernandez i would use that 4k as capital to start a side hustle. I know someone that’s killing it right now with buying a pressure washer and starting a business. Literally there are so many trades that with some youtube university, a bit of tools and some marketing on facebook could create a great side hustle for yourself. Start saving and use those additional funds to set aside to put towards a househack. Then use more of those funds to continually buy more rentals. That’s my recommendation

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  • Susan Maneck
    Investor · Jackson, MS · Member since 2014 · 1k+ posts · 769 votes
    3y

    $4000 isn't even a decent emergency fund or closing costs, but when you are able to save enough I would suggest the place to start is house hacking. That means you buy a property owner-occupied in your case, FHA is probably the way to go since you only need 3% down. You can use an FHA loan for a property with 1-4 units. If multi-units, live in one rent the rest out. If its just one unit, then rent out rooms.

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  • Lelith Walker
    Investor · New York City, NY · Member since 2013 · 263 posts · 141 votes
    3y

    Use the money to learn more about real estate.  

    You can find reits, tax liens, and mortgage notes that cost less than $4000, but if you do not know what you are doing you could loose those to. What you find on social media for the most part will just give you bits and pieces on how to invest in the above strategies. You will need to take courses that will teach you. In addition, you need to network with other real estate investors so look for local meetups and REIA's in your area. Verify everybody first though.

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  • John UnderwoodPro Member
    Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
    3y

    I'd start with wholesaling to generate more money to use as a downpayment on a investment property. 

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  • Susan Maneck
    Investor · Jackson, MS · Member since 2014 · 1k+ posts · 769 votes
    3y

    Wholesaling can get you into a heap of legal trouble if you aren't careful 

    0Reply
  • Basit SiddiqiBusiness Member
    Accountant · New York, NY · Member since 2015 · 8k+ posts · 4k+ votes
    3y

    $4,000 is not enough to get invest in real estate.

    I think once you have $20,000 that you will have a lot more options.

    When investing in real estate, you should have some reserves on top of cash required to close(Down payment and closing costs) to cover some emergencies.

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