Too late to jump into REI?

[Manish Varma]

Just started thinking about REI 2 months ago. Did some analysis and was really impressed how good the ROI can be (of course if done right!).

Then talked to some realtors for out of state investment properties (as I live in CA) and turnkey properties companies.

What I see now is:

- New construction properties: Price way too high!

- Older constructions: people selling the property they bought 6 months ago, rehabbed and now selling it for 100+% of their purchase + Rehab cost. (One example, 100+ yrs old property in IN, originally purchased for 42k in July 2020, now after rehab listed for 139k).

Anyone else also feeling the same or it’s just me? Or it’s totally normal and that’s how it works?

[Jonathan Greene]

You need about a year more research to understand REI and how all the varying factors work. You are only talking about new builds and flipped properties. The whole point of buying low and rehabbing it is to sell high and make money so yes, that's how it works. But REI is about more than building and flipping, it's about buying and holding rentals, rehabbing rentals and then refinancing. Read Rich Dad, Poor Dad and more will make sense.