Hey so I’m completely new to real estate. I haven’t done a single deal yet. I read a lot of the books offered on bigger pockets and watch a lot of webinars and podcast really just trying to learn. I’ve saved up 10k from working at my job and wanted to know how i should use it. Doing the research I’ve done so far I really want to get into renting multi family homes. But I don’t really know how to take the first step yet so I’m kind of stuck.
$10k isn't a lot but it's enough. As far as a multi-unit scenario one option is to go FHA and look for a duplex. You would be living in one of the units. It will require 3.5% down. You can have the seller pay some of your closing costs, which in this market won't be easy, but it won't be impossible. Based off of this info you may be looking at a home maybe +\- $150k - depends on how much the seller pays for, any reserves needed, etc (all info a great lender can help you with). In South Jersey (Gloucester, Camden, Salem counties) there are homes in this range depending on your specific needs and desires. Generally as you move north it gets more expensive and downright insane in some areas.
@Rachel Mazzanti yeah coming up with a strategy has been tough. I wouldn’t say I’m completely clueless. It’s just knowing where to start is the issue and like I said I don’t know what to do with just 10k
$10k isn't a lot but it's enough. As far as a multi-unit scenario one option is to go FHA and look for a duplex. You would be living in one of the units. It will require 3.5% down. You can have the seller pay some of your closing costs, which in this market won't be easy, but it won't be impossible. Based off of this info you may be looking at a home maybe +\- $150k - depends on how much the seller pays for, any reserves needed, etc (all info a great lender can help you with). In South Jersey (Gloucester, Camden, Salem counties) there are homes in this range depending on your specific needs and desires. Generally as you move north it gets more expensive and downright insane in some areas.
Unfortunately you WONT be able to buy a property with 10k. I'm from Newark and I had to invest out of state.
you have to decide what you truly want out of real estate because there's several strategies to pursue me personally I started with 3k and went to wholesaling and grew from there.
Wholesaling is a job on it's own and its definitely not for everyone because it's a job.
I used to spend weekends driving to clients house and you'll need to understand and know all real estate strategies because you'll end up leaving deals go away because you only understand one particular strategy. Everyone who owns a property have a different story and different experience and circumstance thus you must form a strategy to help solve their problems.
Again it's a job fun one if you enjoy but people WILL curse you out and leave hilarious messages you definitely need a thick skin for wholesaling in new jersey.
Best bet is to find a small multifamily or larger single family and buy with an FHA loan so you only have to put 3.5% down. Look up some down payment assistance programs in your area (your area might not have any but it does not hurt to look). Once you have the property you can either house hack by renting out the bedrooms or by renting out the other unit if you decide to go the multifamily route.
I recently purchased my first property last year following a similar strategy as i only had about 18k cash at the time, I was able to get a small down payment. Once I owned the property I was able to rent out 2 of the other bedrooms and greatly decrease my mortgage payment. Just stay motivated and keep looking for deals, if I was able to do it then so can you!