New to real estate? Am I moving too fast?

Question

I am new to real estate investing but have always wanted to get into the industry. I own two houses (live in 1) and am not making much of a profit on my first house because I have a property manager. I was thinking about trying to buy a duplex where I live now. However, I have about 4k in credit card debt for various reasons as well. Without knowing much about real estate ( just finished the beginners course) would it be wise to jump on another property too fast? I do not think I have made any terribly bad decisions yet. I am also looking at more of a buy and hold strategy for steady cash flow and could have some money to put down if need be? Any help would be greatly appreciated.

Corey Hawkinson · Answer

@Kyle Wahl Always tough to make recommendations without all of the details, but I’ll make assumptions... as mentioned, if you can pay off the credit card debt the return far exceeds any buy and hold I’ve found. I can’t find 18%.

What’s the reasoning behind the property manager? Personally, I think cash flow is more important so I recommend managing yourself until you are too large. You’ll also learn more from managing.

Along with everyone else here I believe in owning real estate, but if I were you I would pay off the credit cards and self manage before buying another property. You’ll get a better return from that for only $4,000.

Aaron K. · Answer

Credit card debt should get axed first, that is a guaranteed return on your money of 18%+ you won't find a guarantee like that no matter what kind of duplex you buy.

James Carlson · Answer

@Kyle Wahl

Like others have said, I'd pay off that credit card first. But after that, it's never "too early" to buy again. It's just a matter of if you have clear goals in mind and can achieve those goals. How long have you had your property in Colorado Springs? And where is it exactly? We've got a number of clients who've bought there for either Airbnb rentals or long-term rentals. (Or some variation of house hacking.) If you bought in the last year or so, it can be a little tough to cash flow as prices have seen a Denver-like increase recently.

But if you bought, say, five years ago, you should be doing alright. I'll PM you.

I wish you luck with the CC debt pay down. Cheers!

Kyle Wahl · Answer

Yes that’s my bad, I should have been more detailed in my post but I didn’t want to be long winded. My property is in Colorado Springs.

Corey Hawkinson · Answer

@Kyle Wahl That makes sense. I made an incorrect assumption. I assumed a person in Kansas (lower cost of living) would not be investing out of state.

Kyle Wahl · Answer

@Corey Hawkinson I’m in the military and move around so I’m not at the location of where my property is that’s why. Love the advice and thank you for it!

New to real estate? Am I moving too fast?

New to real estate? Am I moving too fast?

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