Where to start?

Question

Hello all, I’m beginning my journey in real estate investing and am looking for advice. Currently, I am a father of three and have a single income house hold. I am wanting to build a financial foundation through real estate investing but my local market is fairly competitive for a beginner investor w/ limited income. Market values are pretty high in my area (the Columbia gorge) and I feel that Portland could be a good market to get into since there are many more multifamily homes available. My question is, how would you start if you were in my shoes and given my circumstances of being a single income provider, potentially looking to buy multifamily/house hack real estate? Anything helps, I’m looking forward to having a conversation with anyone interested. Thank you!

Aaron Zimmerman · Answer

What does your cash position look like?

Couple options:

1. Do a live in flip if you are comfortable with your place being a construction zone with kids.

2. if you want to house hack, you could if you're committed to that. With kids it's definitely going to be more challenging but not impossible.

3. buy a property through conventional financing (25% down) or through seller financing

Janice Carter · Answer

Voshaun, many first time investors begin by house hacking, partnering or purchasing smaller multifamily properties to reduce risk and limit exposure. The key is to start conservatively, underwrite deals cautiously and build a reliable local team before moving forward. You may also find it valuable to join a local REIA to expand your network and learn from experienced investors.

Min Zhang · Answer

I’d recommend starting with a house hack if possible. If you plan to live in one unit and rent out the others, an FHA loan can be a great option since it requires a lower down payment (as low as 3.5%). If you’re purchasing strictly as an investment property, a conventional loan typically requires 20–25% down. Since you’re considering investing in a different market, I’d strongly suggest speaking with a lender first to understand how much you can get pre-approved for. Once you have that number, you can focus on markets and properties that fit within that price range. Hope this helps, Voshaun!

Wale Lawal · Answer

@Voshaun Bryant

Great question. Being in your shoes, I would focus on a small house hack that where rents can take care of your mortgage payments, also maintain a good cash reserves for emergencies. From my experience I think you should look for properties near employment hubs and use owner occupied financing to lower risk.

Good luck!

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