Newbie - take it easy

11 Replies

What’s up everyone - new to this so please take it easy. I am looking at investing in some buy and hold rentals. These would be my first investment properties other than a land deal I’ve done.
What is everyone’s thoughts on timing right now for first time investor given uncertainty with economy and past eviction moratoriums. My concern is if these get implemented again and also economic or national outlook with everything that is going on. Appreciate any input

Originally posted by @Chad McClanahan :

What’s up everyone - new to this so please take it easy. I am looking at investing in some buy and hold rentals. These would be my first investment properties other than a land deal I’ve done.
What is everyone’s thoughts on timing right now for first time investor given uncertainty with economy and past eviction moratoriums. My concern is if these get implemented again and also economic or national outlook with everything that is going on. Appreciate any input

 I think you're making the worst mistake of your life, that you should probably learn a lot more before you even think about something like this, and that you are probably way out of your league with real estate and should stick to stamp collecting or seashell hunting.
😂

OK, with that out of the way - welcome to the forum! As for first-time investing, it's tough to find deals out there right now but still possible if you think creatively and have some money to actually work with. One thing about real estate is that time is a great forgiver - if you can hold long enough, you almost cannot make a mistake with real estate; the people that get burned are the ones who *have* to sell, for whatever reason.

Start with what you know and what you need. If you need a house to live in, try buying a duplex or triplex. If you've grown up somewhere, try investing in that area first since you probably know the good and bad neighborhoods. If you've only ever lived in single family homes, you might specialize there to start instead of apartments.

Read a lot, ask a lot of questions, hang around with people smarter than you that have done more than you, don't take advice from those who haven't, and save money like your life depended on it.

There's never a time when interest rates, prices, laws, demand, supply, taxes, and everything else line up perfectly. If you don't do it now, you'll find another reason a year, two years, or 5 years from now why then isn't the right time.

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When you say "I am looking at investing in some buy and hold rentals", this tells me you are probably about a year out, minimum, from being actually ready to buy anyway so just don't rush it. Learn all you can, understand your target market, and decide what investment path is better. If you are going for buy and hold rentals you will need 25% down so you may pivot to a house hack in that case if you don't want to burn all that money on a first investment as a downpayment.

Look for motivated sellers and distressed properties. I wouldn't buy anything off MLS or zillow. You have to find your own deals.

Driving for dollars would be one of the better ways. You could advertise on FB market place etc. 

Market to burned out landlords or probate properties etc.

I just bought a condemned house for 12k and fixed it up like new. I had to go out and find this deal.

Thank you all very much for the feed back and info I appreciate it! Money down is not my issue as I have saved for this for some time “waiting for right time” but as you all have mentioned there is no perfect time. I think I will focus on what I know and my hometown to get started and go from there studying for another year in analysis paralysis will not get me started so with the advise of you good people and a mentor back home I’ll jump in.

Thank you all again

@Chad McClanahan  

Are you renting at the moment?  

How much do you have saved up for a down payment?  

Are you working with lenders on how much you would be able to borrow and what programs you would be eligible for?

Can you house hack?

Would you try to self-manage, or would you use property management?

@Chad McClanahan

Hi Chad,

I did property management previously which was great experience. I found that using a property management company for investors was very helpful. It allowed them to have more time to look for there next investment rather than dealing with the day to day headaches of being a landlord. They also screened the renters so well they had very few eviction issues. I am now a realtor and would be happy to show you properties in the Charlotte metro area. Please reach out if I can help!

If you started in the last 12 months, chances are that your property has already appreciated considerably. At least that is the case for us in Northern Virginia. But I would definitely find a market and property type and get started.