Starting small or Starting big - Calling all Real Estate Tycoons
I am 22 with 40k of my own money to play with. I have a SFH deal under contract that will cash flow $650+/month, and will net me an overall 30k-35k at the end of the deal. In order to net 30-35k, I must "live" in the property for at least 2 years; therefore, this will be a 2yr process. I will be house-hacking and investing roughly 22k to make this deal happen. This leaves me with about 15k of my own cash to continue investing; however, I'll have access to an additional 35k of private money for another deal, totaling 50k.
Or, I continue looking for bigger and better deals.
The problem/question I have is am I thinking too small. With the current conditions of our economy, I believe there will be multifamily and better commercial deals coming up soon rather than later. Should I pull the trigger now or hold onto my cash and continue looking for bigger and better deals.
Most Popular Reply
@Armani Tate
Sounds like you are doing well. My strategy has been pretty simple. I try to know as much as possible about an area I am interested in investing (apartments, single family, mobile homes, ect.). I always take the best deal I can find or create. Sometimes that is single family, sometimes it’s bigger. Right now I am pretty well positioned for a decent sized multifamily but I am getting deals on houses, so I am taking them.
The worst thing you can do is make bad buys. It will not happen overnight but eventually you will have a nice portfolio if you only buy the best properties that you know you can win on.