I’m interested in learning all about RE investing for cash flow and to have freedom of time, location and have a cash flow of 5k/mth from RE investment. My thoughts are to start with single family/duplex and look forward to advice and interactions from all who have experienced knowledge to impart.
Lender · Los Angeles, CA · Member since 2022 · 967 posts · 445 votes
2y
Hi Polen,
Starting off with a house-hack or a turn-key rental is the easiest way to get started. The next stage could be a cosmetic BRRRR, that way you can learn to scale your rental portfolio.
Good to have that $5k/mo goal. I'm sure you can learn all about best strategies, tricks, tips, etc, but I'd suggest focusing on the baby steps right in front of you. Journey-of-a-1,000-miles-begins-with-a-single-step type of thing. It's easy to get excited by the big goal but also overwhelmed.
Sounds like you already know this, but I see it with new investors here in Colorado, coming in all hot, excited to retire by age 40 and then are crippled by that first step.
House hacking is the way to go. If you can stand roommates, then buy a house with the most number of rooms you can afford and rent by the room. If you hate people -- no worries -- get a duplex or a house with a basement apartment and Airbnb the hell out of that thing.
The first one won't be perfect. It just needs to be good, and you'll learn a ton for that second one in a year or two.
Realtor · Phoenix, AZ · Member since 2021 · 271 posts · 115 votes
2y
Hi Polen,
I agree with the other responders, house hacking is an ideal way to get into RE. It kills many birds with one stone (you get a place to call home for a bit, while others pay the mortgage and you continue to build equity).
Multi family is much more difficult to get into, as AZ is more geared towards apartment style living quantity wise than duplex/tri/quad living. The inventory and price point are just not there. An alternative is purchasing a SFH that has a casita/guest house built, or a SFH with a shed/detached garage that can be converted into a casita/guest. By doing this, you are essentially building your own multi family property. I am actually helping a first time home buyer do exactly this as we speak.