Newbie looking to get into real estate investment
Member since 2025 · 4 posts · 7 votes
Newbie looking to get into real estate investment
Most Popular Reply
Melissa JusticeBusiness Member
Rental Property Investor · Phoenix, AZ · Member since 2024 · 518 posts · 1k+ votesHi Kaushik! It sounds like you’re in a great position to get started! With $50K ready for your first investment and your interest in turnkey or built-to-rent properties, you’re already set up for a smoother first deal, especially if you want a more hands-off approach.
Since you’re not looking to do major renovations yourself, I’d focus on markets with strong cash flow and affordable property prices, particularly in the Midwest and Southeast. These regions have plenty of turnkey single-family rentals that are already leased, with property management systems in place, so you can start generating income immediately without needing to be local or do repairs yourself.
A few tips to move forward:
Choose your market first – Look for cities with strong tenant demand, low vacancy rates, and landlord-friendly laws. States like Ohio, Alabama, Tennessee, Georgia, and Texas are solid for first-time turnkey investors.
Work with an investor-friendly property source provider company – They can help you vet properties, handle leasing, and manage tenants from a distance.
Consider financing vs cash – With $50K, you could put 20–25% down on a property in many Midwest/Southeast markets and still have cash reserves. Sometimes builders or sellers offer incentives that can be used for rate buydowns or post-close cash back, which can improve your cash flow from day one.
Start simple – Your first property is about learning the process, generating steady cash flow, and building a foundation for future investments.
Happy to share specific markets and property types that have worked for other investors. Best of luck!
16 Replies
- 1yTodd AndersonPro MemberReal Estate Agent · Cape Coral, FL · Member since 2023 · 392 posts · 175 votes
Welcome to the BP community. As you have found this is a great place to learn anbout the REI world.
What I recommend to most investors in your situation is to look at house hacking a duplex. That way if things change in your world you will be is a better place to see cash flow if you move. With this strategy it also offers investors a lower point of entry with 5% down conventional financing.
I am in this space but I agree with @Syed Ahmed, looking into build to rent right now may be a great option. Not only would you be able to live in a new property but the maintenance would be expected to be much less. Right now many builders are giving some great incentives, Including huge rate buydowns to get some properties moving.
Jacksonville is a good growing market and should be strong in the future. I have found rents to be somewhat suppressed right now but the area is still growing.
Best of luck on making the leap to move forward, let me know if I can help more.
- Member since 2025 · 4 posts · 7 votes1y
@Todd Anderson Thank you for all the great suggestions. Prices are still high for new homes in Jax area, I still have to research any turnkey townhomes and sfh rental properties.
- 1yMin ZhangBusiness MemberReal Estate Agent · Member since 2022 · 1k+ posts · 1k+ votes
That’s awesome you’ve been digging in, Kaushik. With $50k set aside, you’ve got a solid base to work from. Since you mentioned you’re not very handy, looking at turnkey or build to rent is a smart move. It’ll let you step into ownership without getting buried in renovation headaches.
One thing that helped me early on was narrowing down whether I wanted my first deal to lean more toward cash flow or appreciation, since that affects which markets and property types to consider. Have you thought about which side matters most to you right now?
- Member since 2025 · 4 posts · 7 votes1y
@Min Zhang Thank you for your response. I'm looking for markets/properties with some positive cash flow but im more interested in good appreciation over 7-10 year time frame. I'd really appreciate if you can suggest specific markets and property types that would fit my criteria so that I could do some more research.
- Insurance Agent · Orlando, FL · Member since 2015 · 297 posts · 122 votes1y
Check out @Elenis Camargo with Thirdstone properties. They can help locate, renovate, and manage your property whether you live in the area or not.
- Member since 2025 · 4 posts · 7 votes1y
@Jared Townsend thank you for the suggestion. I will check out third stone properties.
- 1yMelissa JusticeBusiness MemberRental Property Investor · Phoenix, AZ · Member since 2024 · 518 posts · 1k+ votes
Hi Kaushik! It sounds like you’re in a great position to get started! With $50K ready for your first investment and your interest in turnkey or built-to-rent properties, you’re already set up for a smoother first deal, especially if you want a more hands-off approach.
Since you’re not looking to do major renovations yourself, I’d focus on markets with strong cash flow and affordable property prices, particularly in the Midwest and Southeast. These regions have plenty of turnkey single-family rentals that are already leased, with property management systems in place, so you can start generating income immediately without needing to be local or do repairs yourself.
A few tips to move forward:
Choose your market first – Look for cities with strong tenant demand, low vacancy rates, and landlord-friendly laws. States like Ohio, Alabama, Tennessee, Georgia, and Texas are solid for first-time turnkey investors.
Work with an investor-friendly property source provider company – They can help you vet properties, handle leasing, and manage tenants from a distance.
Consider financing vs cash – With $50K, you could put 20–25% down on a property in many Midwest/Southeast markets and still have cash reserves. Sometimes builders or sellers offer incentives that can be used for rate buydowns or post-close cash back, which can improve your cash flow from day one.
Start simple – Your first property is about learning the process, generating steady cash flow, and building a foundation for future investments.
Happy to share specific markets and property types that have worked for other investors. Best of luck! - 1yArman AhmedPro MemberReal Estate Agent · Columbus Cleveland Dayton, OH · Member since 2024 · 2k+ posts · 948 votes
Kaushik, congrats on saving up to take that first step! If you’re not looking to get hands-on, turnkey or built-to-rent properties are a smart way to start, especially out-of-state where the numbers can make more sense. I invest in the Midwest, and a lot of investors there focus on cash-flowing turnkey rentals that don’t require much day-to-day work. The key is finding reliable property management to handle tenants and maintenance while you grow your portfolio. Start with cash flow first, then worry about long-term appreciation.
- 1ySteven GlickBusiness MemberLender · Buffalo · Member since 2024 · 115 posts · 33 votes
Welcome, Kaushik. With the savings you’ve built up, exploring rental properties outside Jacksonville could be a smart step, especially if you’re leaning toward turnkey or build-to-rent options that don’t require hands-on work. Financing can play a big role in stretching that capital further, so structuring it the right way upfront will help set you up for growth. Happy to share some guidance as you map out the next steps.
- 1yDrew SygitBusiness MemberProperty Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
How much do you know about Property Classes?
Recommend you spend some time learning about them, so you don’t mistakenly buy a property that will NEVER meet your expectations!
Why is Property Class so important for investors to understand and apply in their investing strategies?
Because the Property Class dictates the Class of the tenant pool that the property will attract.
The Tenant Class greatly impacts rental income stability and property maintenance/damage by tenants.
Both Property Class and Tenant Class will affect what type of contractors, handymen and property management companies you should target and be willing to deal with a property.
The Property Class will also impact the maintenance & renovations you do to,, “Maintain to the Neighborhood”.
Why is that important?
Well, if you buy & renovate a property in Class D area to Class A standards, what Tenant Class will actually rent it?
Or, if you put several Class D tenants in a Class A four-plex, what do you think will happen to the property?
So, if you fail to apply the correct assumptions to a property, your expectations won’t be met, and it may even be a financial disaster.
We use the following to rank Property Classes, in order of importance:
- Property Tenant Pool: closely linked to location, but not always.
- Property Location: closely linked to tenant pool, but not always.
- Property Condition & Amenities: it’s important to, “Maintain to the Neighborhood.”
Key metrics for each Property Class:
Class A Properties:
Tenant Pool: Majority of FICO scores 680+, no convictions/evictions in last 7 years.
Tenant Default: 0-5% probability of eviction or early lease termination.
Section 8: Class A rents are too high and won’t be approved.
Vacancies: 5-10%, depending on market conditions.
Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Class B Properties:
Tenant Pool: Majority of FICO scores 620-680, some blemishes, no convictions/evictions in last 5 years.
Tenant Default: 5-10% probability of eviction or early lease termination.
Vacancies: 10-15%, depending on market conditions.
Cashflow vs Appreciation: Typically, 1-3 years for positive cashflow, balanced amounts of relative rent & value appreciation.
Section 8: Class B rents are usually too high for the Section 8 program.Class C Properties:
Tenant Pool: Majority of FICO scores 560-620, many blemishes, but should have no convictions/evictions in last 3 years. Verifying recent 2-years of rental history very important! Same for 2-years of job/income stability.
Tenant Default: 10-20% probability of eviction or early lease termination.
Section 8: Class C rents usually meet program requirements, proper screening still recommended.
Vacancies: 10-20%, depending on market conditions and tenant screening.
Cashflow vs Appreciation: Should cashflow immediately, at the lower end of relative rent & value appreciation.
Class D Properties:
Tenant Pool: Majority of FICO scores under 560, little to no good tradelines, lots of collections & chargeoffs, but should have no convictions/evictions in last 12 months. Verifying last 2-years of rental history and income/employment extremely important to find the “best of the worst”.
Tenant Default: 20-30% probability of eviction or early lease termination.
Section 8: Class D rents meet program requirements, often challenges to pass Section 8 inspection.
Vacancies: 20%+, depending on market conditions and tenant screening.
Cashflow vs Appreciation: Typically, all cashflow with little, maybe even negative, relative rent & value appreciation.
Where did we get our FICO credit score information from?
Check out this chart:
FICO Score
Pct of Population
Default Probability
800 or more
13.00%
1.00%
750-799
27.00%
1.00%
700-749
18.00%
4.40%
650-699
15.00%
8.90%
600-649
12.00%
15.80%
550-599
8.00%
22.50%
500-549
5.00%
28.40%
Less than 499
2.00%
41.00%
Make sure you understand the Class of properties you are looking at and the corresponding results to expect.
Metro Detroit has 132 cities, the City of Detroit 183 Neighborhoods, which we’re analyzing and classifying. Check out the map on our website where we’ve made this all easy to follow.
We can also share numerous examples of properties & portfolios we’ve assisted investors with!
DM us if you’d like to discuss this logical approach in greater detail!
Logical Property Management4.9459 Reviews - Real Estate Coach · Chicago, IL · Member since 2020 · 171 posts · 64 votes1y
Hey Kaushik, welcome! Sounds like you’re thinking strategically — having $50K saved and considering your location and work options first is a smart approach.
Since you’re not super handy and want turnkey or built-to-rent properties, focusing on cash-flowing rentals that are managed by a professional team makes sense. The biggest thing I’ve seen help new investors in your situation is having a clear system for evaluating deals and running the numbers so you know the property will generate positive cash flow even if you’re hands-off.
I’ve worked with a few newer investors in similar spots, and having that framework really accelerates the first purchase and avoids common rookie mistakes. Happy to share some insights or connect if you want to talk through your options.
- 1yJimmy LieuBusiness MemberReal Estate Agent · Columbus, OH · Member since 2019 · 3k+ posts · 2k+ votes
Quote from @Kaushik Kesani:
I'm Kaushik, i live in Jacksonville, Fl along with my wife and 2 daughters (2ys and 2 months). I've been thinking about wealth building through real estate and i've been doing some research for a couple of months (on and off) and thank god i found bigger pockets. I've going through the Forums and i'm amazed by the wealth of information i can find here.
I've saved up about ~50K (outside my Emergency Funds) to buy my first house, but i backed off because Jax has limited opportunities in my area of work and I'm not sure if i am going to live here long-term. I've been looking for work opportunities in other states. So, i've been thinking about using this saved up money to buy my first rental.
I'm not a very handy person. I'm interested in turn key properties and built to rent kind of properties. I'd appreciate any feedback or suggestions on my current situation and any guidance on how do i move forward
Hey Kaushik, welcome to BiggerPockets and congrats on stacking that 50K to get started, that’s a huge step forward. Since you’re not sure if Jacksonville is your long-term spot and you’re not super handy, going turnkey or built-to-rent definitely makes sense because it’ll let you get into the game without being tied down to a market you may leave or stressing over heavy renovations. If you’re open to out-of-state investing, I’d suggest looking into Columbus, Ohio. It’s one of the strongest rental markets in the country right now with population and job growth surging and massive companies moving in like Intel, Amazon, Google, Honda, Facebook, Microsoft, LG and more. Even with all that growth, prices are still really affordable compared to other metros, with plenty of deals in the $120–180K range that can hit the 1% rule and cash flow from day one. It’s also very landlord-friendly, which makes long-distance investing a lot smoother. Long-term appreciation potential here is also strong, so you get the benefit of cash flow now plus equity growth over time. Happy to connect and answer any questions you have!
Jimmy Lieu, Red 1 Realty4.9120 Reviews - Property Manager · Jacksonville, FL · Member since 2018 · 514 posts · 470 votes1y
Thank you @Jared Townsend!! Definitely this is what we have done for many other investors. @Kaushik Kesani I'll reach out to you :)
- Property Manager · Orlando, FL · Member since 2016 · 479 posts · 277 votes1y
Quote from @Kaushik Kesani:
I'm Kaushik, i live in Jacksonville, Fl along with my wife and 2 daughters (2ys and 2 months). I've been thinking about wealth building through real estate and i've been doing some research for a couple of months (on and off) and thank god i found bigger pockets. I've going through the Forums and i'm amazed by the wealth of information i can find here.
I've saved up about ~50K (outside my Emergency Funds) to buy my first house, but i backed off because Jax has limited opportunities in my area of work and I'm not sure if i am going to live here long-term. I've been looking for work opportunities in other states. So, i've been thinking about using this saved up money to buy my first rental.
I'm not a very handy person. I'm interested in turn key properties and built to rent kind of properties. I'd appreciate any feedback or suggestions on my current situation and any guidance on how do i move forward
@Kaushik Kesani welcome to BP and congrats on the savings and starting your journey. I think you are incredibly wise to start with something more turnkey. I think many jump too quickly into value add rental properties or fixer uppers and can get overwhelmed very quickly or under budget for renovations.
FL is a tough market to make rentals work right now. Cap rates or yields are in the 6% range give or take and interest rates are 6-7.5% depending on property, lender, etc. So it's tough to find deals you can get financed with only 20-30% down anymore, and most likely the ones you can are underestimating operating expenses. I think there are a lot of long term indicators for Florida and I'm long term bullish, but in todays market it's not so easy.
Also, $50k won't really get you too far in Florida unfortunately. You'll want to keep some of that money set aside for a rainy day and unexpected costs, so let's assume $5k but you might want to do a bit more or les depending upon your risk tolerance. I would highly advise keeping a seperate reserve amount for each property not tied into your families emergency funds. I say this from experience. So even if you had $45k and you could find something to do 20% down, thats still only $225k all in price for a property, and properties in Florida at that price range are either older condos or townhomes and/or in worse areas of town. Now if you start assuming a higher percentage down payment, your all in price you can get to goes down into the $140-$200k range depending on assumptions.Plenty of people buy condo's to rent out so I'm not saying it's not doable, but a lot of single family homes or other properties are at least over $300k which might make it tough; especially if you are looking for something turnkey. Maybe you could find something in a small town somewhere in FL, but I don't know too much about that.
Hopefully that helps or gives you something more to think about as you're weighing up your different options
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