If you were 26 and just getting started, where would you start?

Question

Hello everyone! My name is Chris, i'm new to the Bigger Pockets community and just getting started in my education of real estate. I'm 26, married and a firefighter/paramedic full time and also work as a carpenter on my days off. My goal is to build a real estate/investment portfolio (end goal of multifamily) while working as a firefighter over the next 20 years to have passive income once I retire from the fire industry.

With all of this background information, I'd really love to hear your suggestions as to how you would go about this if you were just starting out again?

Would you buy beat up houses and flip small single family homes? Would you refrain from buying a home all together? Would you strictly start with multifamily investing?

I understand this advice depends on strengths, weaknesses, goals, etc. Ultimately I'll make my own decision on how to proceed, I'd just really like to hear from some of you seasoned folks what YOU would do if you were just starting out again? Would you change anything? Really hoping to just get a conversation started and learn from you all.

Thanks!

Miranda Moloto · Answer

Can I just say...I'm not 26yo, but am very new to real estate investment and have found value in all your responses above. Thank you Christian for asking the question

Thomas S. · Answer

I would start by flipping. Stay as a tennat/renter yourself to maximise your cash saving potential and use flips to build up your cash reserves.

You can then begin adding buy and hold to your portfolio as you continue to flip. In reality if your flipping is successful it could be your long term  path to riches.

Christian Szadyr · Answer

Wow! Thank you all for the insight and information! I'll keep it all in mind as I continue to learn and get ready to dive into my first property. Thanks everyone!

Brett Goldsmith · Answer

I'd continue to save money while learning, building a network, and searching for a great deal. I feel that entering projects with the goal of value add and selling would be the quickest way to build substantial cash. I've personally done and am doing a hybrid of rehab projects and purchasing multi units for long term cash flow.

Just remember that you need access to capital to keep doing deals so if you are limited on funds and tie it up in a rental property that makes you an extra few grand a year you may be limiting yourself to doing other projects.

John Warren · Answer

@Christian Szadyr a lot of this depends on the tolerance your family has to house hacking. I personally always wanted to house hack, but never had the opportunity since my kids were already in great schools. Instead, I invested in apartments in the nearby Berwyn and Lyons markets and bought a fixer upper for my family to live in. If kids are not in the picture, I would house hack a 3 or a 4 unit with a 5% down conventional loan first. Then I would house hack another 3 or 4 unit property with my FHA loan. At that point, I would refiancne the FHA and do it one or two more times. It is very possible to grab up three to four solid cash flowing properties like this!