Clearwater, FL · Member since 2014 · 42 posts · 4 votes
Currently researching the best option for my first investment most likely in the state of Florida.
Money out of pocket would only be 5k-10k
My mind was set on "flips" to build capital at first but now I'm also looking at the idea of investing in a duplex living in one half and renting out the other.
So I'm just looking for the best advice on which to invest in for a beginners first investment so I can really dive In to all the research and make this happen in the near future using creative financing?
Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
12y
If you only have 5k-10k I do not see how you would even be able to attempt to do a flip.
I think your best plan of attack will be an owner occupied duplex. You can live in one half and earn rental income from the other. Your realitivly small amount of capital should not be a major hurdle as long as you have a decent income and good credit.
With 5k-10k you could get an FHA loan for an ower occupied duplex. Your down payment would only need to be 3.5%
Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
12y
If you only have 5k-10k I do not see how you would even be able to attempt to do a flip.
I think your best plan of attack will be an owner occupied duplex. You can live in one half and earn rental income from the other. Your realitivly small amount of capital should not be a major hurdle as long as you have a decent income and good credit.
With 5k-10k you could get an FHA loan for an ower occupied duplex. Your down payment would only need to be 3.5%
Rental Property Investor · Pittsburgh, PA · Member since 2013 · 178 posts · 57 votes
12y
You should link up with a local investor and work for them. They will put you to work on acquisition and marketing. You'll quickly learn how to invest your money. And....you'll get paid doing it.
If you only have 5k-10k, you should not plan to flip or hold.
You should link up with a local investor and work for them. They will put you to work on acquisition and marketing. You'll quickly learn how to invest your money. And....you'll get paid doing it.
If you only have 5k-10k, you should not plan to flip or hold.
Great idea by Dan getting involved in marketing with another investor.
Some will scoff at this as it breaks all the "rules" but I had about $500 in my bank account when I bought my 1st home (primary residence) & 11k in the bank when I bought my 1st rental property (duplex)
It can be tough and risky but a person can get started with 10k
Disclaimer
The no money down owner occupied deal I put together was a right time & right place kind of thing. Newbies should not bank on this being a possibility. It would not have worked had I not been intending to use the home as my residence.
So my short term goal is to invest to the best of my financial circumstances to build enough capital (this is why I thought "flipping" was the right move) and only after just posting this I found more posts on BP about buying duplexes and that almost seems like the better move since I have such little capital.
My long term goal is buy and hold properties. Short and simple. Maybe flip houses on the side.
Dan I'm not currently in the city I want to invest in so dont have that much to network with except online. But don't get me wrong I plan to do a lot of networking between, family, friends, friends parents and so on and build a few mentor relationships.
But i do have very little capital. I make about 13-16$ per hour so that's kinda why I turned to investing in the first place. I have a lot of saving, time and study to put in but this has helped a lot. Thanks to you both
Rental Property Investor · Pittsburgh, PA · Member since 2013 · 178 posts · 57 votes
12y
I like the idea of you living in one side of the duplex. It's a great way to get started! You don't have to live where you invest. I still say get involved in your REIA and work for an investor. You'll get paid while you learn the trade.