Best investment property with a 15k down payment?

Question

Hey guys!

I currently have 11k for an investment property I plan to buy in 6-8 months. I'm currently in a good situation for investing as I recently moved where I no longer pay rent and I'm saving a decent amount of money slowly but surely. I plan to have 15k for a down payment in 6-8 months, give or take 1-2k. So my question is where should I buy? Should I go for a duplex? It will be an out of state purchase as I live in Los Angeles which there is nothing I can afford close to me. I have family that work in real estate in OK where it is cheap, and they can manage it. I do want to have a rental that makes me passive income. Should I invest there? Or should I look at other states? Any and all advice is appreciated. Just trying to prepare ahead of time to make sure I don't make any mistakes, thanks! I figure I can purchase something 60-100k.

Ali Boone · Answer

Hi Josh! Not far from you...just down in Venice. As far as the options, there are some. $15k will be pushing it, just because you will not only need money for 20% down as well as some additional for closing costs. $15k can be the downpayment for a $75,000 property (which you can get a good one in various markets for that), but then nothing for closing. So you'd either have to go for a cheaper property (starts increasing risk) or save just a few thousand more.

OK probably has options. Other midwestern cities have good things in that price range. KC is one of them. Indy is another good one.

Wherever you look, just be sure you are up on running numbers so you kind of know what you're looking at. If you aren't familiar with running them, check out-

https://www.biggerpockets.com/renewsblog/2013/01/1...

Hope that helps!

Thomas Kulinski · Answer

Hi Josh ,

I am not familiar with OK market but if you have a family there to help you that would save you some $$$. I would go that route . It is safer than dealing with strangers who might not look for your best interest. I, too, am looking to invest out of state. Currently looking into TN.

Best of luck on your investing journey.