If you were to be a new investor starting today where would you start out? I.e. house hacking, wholesaling, Airbnb, BRRR, etc. Assume you are where you were financially when you first started. Just curious and interested to see what you guys have to say!
STRs all the way. Truly a way to quick cash flow and wealth all the while building equity. I wish they would have been around a couple decades ago....
Most people are going to reply with what they are doing as it is working for them. I would buy a single family home. If possible with a suite.
I would buy single family rentals, use the BRRRR method to add value and hold onto them for appreciation/debt pay down for a minimum of 5 years. I would then sell and use the 1031 exchange to purchase larger properties.
So basically I would do exactly what I’m already doing.
Flip till I got 1 million dollars then a value add apt building with commercial loan. Fix up 1099 3 years later
Rinse and repeat
It is a different market but i would move to the worst market in the country +/- and start there....
I would invest in a duplex, 1031 exchange out of the duplex into a fourplex then 1031 exchange out of that into a larger complex. I recommend investing in a growing Midwestern market. Of course I am partial to KC but with the 1031 exchange you have a lot of leverage power coming in to a market.
I think most of us would do what we are doing, maybe just on a smaller scale to start out. So for me that’s value add MF for my rentals. I think that new investors think the market is too hot to invest in. However you can still find deals with upside.
I still consider myself a new investor so I would do the same all over again. From a place with no capital, no experience, and no idea what to do, I would consume knowledge from others more knowledgeable than me, leverage friends, family and coworkers, and BRRRR residential properties until I can get into larger MF.
I echo what @Neddie Smith said. I would consume knowledge at an absurd pace. This was the real beginning of my journey even though I had executed several of today's "trendy" strategies already. After knowledge, I would become part of or create a team that's going in the direction you want to go. The craziness often comes after this inflection point.
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