Okay Everybody, I need some guidance asap!!

[Joshua Stokes]

Ok everybody, I need some guidance ASAP.

My deal: I'm new to the game but have been trying to learn extensively about real estate for the last year. This would be my first property. The intention is to buy and hold. Im 36 years old, I have a little money saved and am looking to get into real estate.

The deal: it's a duplex in Missouri, in my home town. I have the initial investment money on hand. After down payment and financing the property generates 7-8% cash flow (based on initial investment) so good, but not great.
However its turns out the property is being sold by my uncle who is a GC, so it was well built (by him in the late 90's) and well maintained. It's in a stable market due to all of the government work, so not a huge upside from appreciation but not much risk of dips.
Furthermore there is a reliable and trustworthy management company with a fair price (8% of rent collected) at the ready to take over the property.

There is also a good lender connected to all parties to help facilitate.

The big Q:
Quite simply, why should or shouldn't I make this my first property?!?

As I see it, the pros these:
Decent return, Low risk, good property, stable market - potentially a good intro to the world of real estate.

Cons - maybe I should be aiming higher? Taking on more risk at my age? Pushing myself a little further/harder?


What does everybody think?

Side note: the deal is on a little bit of a short fuse - so any input is greatly appreciated.

[Ricardo Meza]

Hi Joshua,

Kudos to you for wanting something bigger, I trust with your due diligence and the help of BP, you'll get exactly that.

That said, I see action, and the learning as additional pros by starting small in your hometown.  That's why this should be your 1st, on top of everything else you see.

Your con is not a con - it's a reflection of who your are.  Own it, and use it to find your success in this deal.

Good luck!