I want to invest... I'm terrified to start.

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I want to invest... I'm terrified to start.

Samuel Tupy
Bloomington, MN · Member since 2026 · 5 posts · 10 votes

Hey, I'm Sam!

I want to buy my first investment property, but I'm so afraid I'll mess it up.

I've been interested in real-estate for a few years, but for the first time, I find myself in a place where I think it could actually be possible.  I have a few grand in cash set aside and a little equity in my current home I could use toward an investment property.

My brother-in-law has seen great success with the BRRRR method in NC over the last few years and I would like to try my hand. I'm just nervous about such a big investment. I fear the possibility that I could overlook something on my first investment that would shut the door on future opportunities altogether.

I have 3 young kids and I'm motivated by a desire to give them opportunities and stability I never had. My wife and I are in our early 30s and we have steady income and a start at retirement.  I know rationally, this is a good base to build from, but I can't shake the sense that one bad bet when I'm first starting out could shake that foundation entirely.

Do you have any tips to get over first-time jitters?  What mindset did you cling to in starting out?

I've started this journey by reaching out to a handful of real-estate professionals I know and asking for any tips they can give me and it's given me a little more confidence.  My goal right now is to learn all I can... that's how I ended up here.

I would love to hear any other advice you would offer a newbie like myself!

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JD MartinBusiness Member
Moderator
Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 16k+ votes
2mo

If you want to listen to a horror story click on my appearance on the podcast (in my signature below). I lost a lot of money first time out. I've made a whole lot since then. 

If you weren't nervous or scared then you would be delusional or a psychopath. That feeling is your brain telling you to beware. But beware isn't the same thing as do nothing. A lot of money can be made in real estate.

Start small. Forget about gurus and BRRRR and all the other hype and nonsense you hear all over the place (including around here). Find one decent little house in a decent area that you can clean up and rent for a reasonable amount of money. Don't try to hit a grand slam - just put the ball in play. Accept that you're going to make some mistakes. You're going to improve things that don't get you any more rent and you're going to cheap out on things you should have replaced. You'll probably pick at least one tenant that's not ideal. You'll be here every other day asking about collecting rent and vaping in the house and sneaking in dogs and complaining neighbors and a thousand other things you don't even know about. All of that is OK. It is part of the learning process.

Real estate is a long game. If you buy carefully, select tenants carefully, and hold long enough there's almost no way to lose money. Almost always the money lost in real estate is when you have to sell when the timing is not ideal. Think of it this way - if you bought a house on a 15 year note, where the rent didn't put a dime in your pocket but at least covered your costs, in 15 years without doing anything else you have an asset worth probably at least your initial cost + inflation, free and clear, paid for by your tenants. And you didn't even have to commit very much of your own money because the bank loaned it to you. And you got tax breaks along the way from the government. 

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Skyline Properties
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  • Amir Wilson
    Flipper/Rehabber · Las Vegas, NV · Member since 2011 · 15 posts · 12 votes
    2mo
    Quote from @Samuel Tupy:

    Hey, I'm Sam!

    I want to buy my first investment property, but I'm so afraid I'll mess it up.

    I've been interested in real-estate for a few years, but for the first time, I find myself in a place where I think it could actually be possible.  I have a few grand in cash set aside and a little equity in my current home I could use toward an investment property.

    My brother-in-law has seen great success with the BRRRR method in NC over the last few years and I would like to try my hand. I'm just nervous about such a big investment. I fear the possibility that I could overlook something on my first investment that would shut the door on future opportunities altogether.

    I have 3 young kids and I'm motivated by a desire to give them opportunities and stability I never had. My wife and I are in our early 30s and we have steady income and a start at retirement.  I know rationally, this is a good base to build from, but I can't shake the sense that one bad bet when I'm first starting out could shake that foundation entirely.

    Do you have any tips to get over first-time jitters?  What mindset did you cling to in starting out?

    I've started this journey by reaching out to a handful of real-estate professionals I know and asking for any tips they can give me and it's given me a little more confidence.  My goal right now is to learn all I can... that's how I ended up here.

    I would love to hear any other advice you would offer a newbie like myself!

     I lost 17 units in 07, 08 crash. You've got income, equity, retirement started: your downside is not as bad as you nervous system is telling you. I made  it through the crash focusing on doing it better this time around. I could see my mistakes so I improved on them. Wholesale a couple of deals to get some reps under your belt. It's minimal risk but good earning potential and great experience. What if you get it right on your first bet?

    4Reply
    • Samuel Tupy
      OP
      Bloomington, MN · Member since 2026 · 5 posts · 10 votes
      2mo
      Quote from @Amir Wilson:
      Quote from @Samuel Tupy:

      Hey, I'm Sam!

      I want to buy my first investment property, but I'm so afraid I'll mess it up.

      I've been interested in real-estate for a few years, but for the first time, I find myself in a place where I think it could actually be possible.  I have a few grand in cash set aside and a little equity in my current home I could use toward an investment property.

      My brother-in-law has seen great success with the BRRRR method in NC over the last few years and I would like to try my hand. I'm just nervous about such a big investment. I fear the possibility that I could overlook something on my first investment that would shut the door on future opportunities altogether.

      I have 3 young kids and I'm motivated by a desire to give them opportunities and stability I never had. My wife and I are in our early 30s and we have steady income and a start at retirement.  I know rationally, this is a good base to build from, but I can't shake the sense that one bad bet when I'm first starting out could shake that foundation entirely.

      Do you have any tips to get over first-time jitters?  What mindset did you cling to in starting out?

      I've started this journey by reaching out to a handful of real-estate professionals I know and asking for any tips they can give me and it's given me a little more confidence.  My goal right now is to learn all I can... that's how I ended up here.

      I would love to hear any other advice you would offer a newbie like myself!

       I lost 17 units in 07, 08 crash. You've got income, equity, retirement started: your downside is not as bad as you nervous system is telling you. I made  it through the crash focusing on doing it better this time around. I could see my mistakes so I improved on them. Wholesale a couple of deals to get some reps under your belt. It's minimal risk but good earning potential and great experience. What if you get it right on your first bet?

      Thanks Amir!

      This is great encouragement.

      You mind if I ask, how to you pull yourself out of the dip?

      0Reply
    • Amir Wilson
      Flipper/Rehabber · Las Vegas, NV · Member since 2011 · 15 posts · 12 votes
      2mo
      Quote from @Samuel Tupy:
      Quote from @Amir Wilson:
      Quote from @Samuel Tupy:

      Hey, I'm Sam!

      I want to buy my first investment property, but I'm so afraid I'll mess it up.

      I've been interested in real-estate for a few years, but for the first time, I find myself in a place where I think it could actually be possible.  I have a few grand in cash set aside and a little equity in my current home I could use toward an investment property.

      My brother-in-law has seen great success with the BRRRR method in NC over the last few years and I would like to try my hand. I'm just nervous about such a big investment. I fear the possibility that I could overlook something on my first investment that would shut the door on future opportunities altogether.

      I have 3 young kids and I'm motivated by a desire to give them opportunities and stability I never had. My wife and I are in our early 30s and we have steady income and a start at retirement.  I know rationally, this is a good base to build from, but I can't shake the sense that one bad bet when I'm first starting out could shake that foundation entirely.

      Do you have any tips to get over first-time jitters?  What mindset did you cling to in starting out?

      I've started this journey by reaching out to a handful of real-estate professionals I know and asking for any tips they can give me and it's given me a little more confidence.  My goal right now is to learn all I can... that's how I ended up here.

      I would love to hear any other advice you would offer a newbie like myself!

       I lost 17 units in 07, 08 crash. You've got income, equity, retirement started: your downside is not as bad as you nervous system is telling you. I made  it through the crash focusing on doing it better this time around. I could see my mistakes so I improved on them. Wholesale a couple of deals to get some reps under your belt. It's minimal risk but good earning potential and great experience. What if you get it right on your first bet?

      Thanks Amir!

      This is great encouragement.

      You mind if I ask, how to you pull yourself out of the dip?




      I had proven the concept worked but my execution needed work. I needed to protect myself and my investment much like you want to do. I sharpened my deal evaluation skills wholesaling with minimal risk. Evaluation is the life blood of real estate and I have never used more than $100 for a down payment on a wholesale deal. Wholesaling first works in your situation because it gives you reps that will serve you in any RE vehicle and cash to commit to BRRRR strategy if you choose. A good deal will sell. That first closing will remove those jitters and build some confidence in your ability. Have you found any deals you are looking at?


      1Reply
    • Samuel Tupy
      OP
      Bloomington, MN · Member since 2026 · 5 posts · 10 votes
      2mo
      Quote from @Amir Wilson:
      Quote from @Samuel Tupy:
      Quote from @Amir Wilson:
      Quote from @Samuel Tupy:

      Hey, I'm Sam!

      I want to buy my first investment property, but I'm so afraid I'll mess it up.

      I've been interested in real-estate for a few years, but for the first time, I find myself in a place where I think it could actually be possible.  I have a few grand in cash set aside and a little equity in my current home I could use toward an investment property.

      My brother-in-law has seen great success with the BRRRR method in NC over the last few years and I would like to try my hand. I'm just nervous about such a big investment. I fear the possibility that I could overlook something on my first investment that would shut the door on future opportunities altogether.

      I have 3 young kids and I'm motivated by a desire to give them opportunities and stability I never had. My wife and I are in our early 30s and we have steady income and a start at retirement.  I know rationally, this is a good base to build from, but I can't shake the sense that one bad bet when I'm first starting out could shake that foundation entirely.

      Do you have any tips to get over first-time jitters?  What mindset did you cling to in starting out?

      I've started this journey by reaching out to a handful of real-estate professionals I know and asking for any tips they can give me and it's given me a little more confidence.  My goal right now is to learn all I can... that's how I ended up here.

      I would love to hear any other advice you would offer a newbie like myself!

       I lost 17 units in 07, 08 crash. You've got income, equity, retirement started: your downside is not as bad as you nervous system is telling you. I made  it through the crash focusing on doing it better this time around. I could see my mistakes so I improved on them. Wholesale a couple of deals to get some reps under your belt. It's minimal risk but good earning potential and great experience. What if you get it right on your first bet?

      Thanks Amir!

      This is great encouragement.

      You mind if I ask, how to you pull yourself out of the dip?




      I had proven the concept worked but my execution needed work. I needed to protect myself and my investment much like you want to do. I sharpened my deal evaluation skills wholesaling with minimal risk. Evaluation is the life blood of real estate and I have never used more than $100 for a down payment on a wholesale deal. Wholesaling first works in your situation because it gives you reps that will serve you in any RE vehicle and cash to commit to BRRRR strategy if you choose. A good deal will sell. That first closing will remove those jitters and build some confidence in your ability. Have you found any deals you are looking at?


      I’m looking at a property this afternoon.

      It’s a triplex with a single dwelling alongside.  Selling as a package.

      It’s an older building and the boiler is shot in the triplex, but the price seems to be in the right range.

      Biggest issue is I don’t have a ton of cash on hand.  Enough to make something move, but not a lot to bounce back from if things go south.

      Would love tips on working with lenders and finding the right partnership if you have any!

      0Reply
    • Amir Wilson
      Flipper/Rehabber · Las Vegas, NV · Member since 2011 · 15 posts · 12 votes
      2mo
      Quote from @Samuel Tupy:
      Quote from @Amir Wilson:
      Quote from @Samuel Tupy:
      Quote from @Amir Wilson:
      Quote from @Samuel Tupy:

      Hey, I'm Sam!

      I want to buy my first investment property, but I'm so afraid I'll mess it up.

      I've been interested in real-estate for a few years, but for the first time, I find myself in a place where I think it could actually be possible.  I have a few grand in cash set aside and a little equity in my current home I could use toward an investment property.

      My brother-in-law has seen great success with the BRRRR method in NC over the last few years and I would like to try my hand. I'm just nervous about such a big investment. I fear the possibility that I could overlook something on my first investment that would shut the door on future opportunities altogether.

      I have 3 young kids and I'm motivated by a desire to give them opportunities and stability I never had. My wife and I are in our early 30s and we have steady income and a start at retirement.  I know rationally, this is a good base to build from, but I can't shake the sense that one bad bet when I'm first starting out could shake that foundation entirely.

      Do you have any tips to get over first-time jitters?  What mindset did you cling to in starting out?

      I've started this journey by reaching out to a handful of real-estate professionals I know and asking for any tips they can give me and it's given me a little more confidence.  My goal right now is to learn all I can... that's how I ended up here.

      I would love to hear any other advice you would offer a newbie like myself!

       I lost 17 units in 07, 08 crash. You've got income, equity, retirement started: your downside is not as bad as you nervous system is telling you. I made  it through the crash focusing on doing it better this time around. I could see my mistakes so I improved on them. Wholesale a couple of deals to get some reps under your belt. It's minimal risk but good earning potential and great experience. What if you get it right on your first bet?

      Thanks Amir!

      This is great encouragement.

      You mind if I ask, how to you pull yourself out of the dip?




      I had proven the concept worked but my execution needed work. I needed to protect myself and my investment much like you want to do. I sharpened my deal evaluation skills wholesaling with minimal risk. Evaluation is the life blood of real estate and I have never used more than $100 for a down payment on a wholesale deal. Wholesaling first works in your situation because it gives you reps that will serve you in any RE vehicle and cash to commit to BRRRR strategy if you choose. A good deal will sell. That first closing will remove those jitters and build some confidence in your ability. Have you found any deals you are looking at?


      I’m looking at a property this afternoon.

      It’s a triplex with a single dwelling alongside.  Selling as a package.

      It’s an older building and the boiler is shot in the triplex, but the price seems to be in the right range.

      Biggest issue is I don’t have a ton of cash on hand.  Enough to make something move, but not a lot to bounce back from if things go south.

      Would love tips on working with lenders and finding the right partnership if you have any!




      You're doing what investors do, looking at properties. Kudos on that. Evaluation is the lifeblood of real estate. You can't evaluate a package; you have to evaluate them individually. There's no way to know if the price seems to be in the right range if you don't have comparable sales telling you that. The price isn't right just because they are asking for it. The comparable sales determine if the price is right. If you don't have a ton of cash on hand, the boiler could be a really big problem. That is money going out before you have collected a penny. Being cash light isn't the problem. It means you need a deal that doesn't require you to have a ton of cash. I wouldn't talk to a lender or partner on a deal that is not properly underwritten. They need to know you have a profitable deal before you get funded. That is putting the cart before the horse and doing you a disservice. What is the asking price for each property? What are the comparable sales for each? What is your strategy for buying them (BRRRR, flip, wholesale etc.)?


      1Reply
  • Patrick O'SullivanBusiness Member
    Property Manager · Phoenix, AZ · Member since 2024 · 525 posts · 197 votes
    2mo

    Hey @Samuel Tupy, welcome to BP.

    That fear's normal, everyone here felt it before deal one.

    Real risk isn't a bad first deal, it's never pulling the trigger. Run your numbers conservative (real rehab contingency, worse-case refi rate). If it still works, you've got margin for error.

    Start smaller than you think you need. Boring, straightforward property teaches you the process without betting everything.

    Lean on your brother-in-law's contractor/lender/agent contacts in NC. Saves you from repeating mistakes he's already made.

    Income, some equity, retirement started, three kids as your why, that's not shaky. That's ready.

    Good luck, keep us posted.

    [email protected]480-795-7938
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    2Reply
  • JD MartinBusiness Member
    Moderator
    Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 16k+ votes
    2mo

    If you want to listen to a horror story click on my appearance on the podcast (in my signature below). I lost a lot of money first time out. I've made a whole lot since then. 

    If you weren't nervous or scared then you would be delusional or a psychopath. That feeling is your brain telling you to beware. But beware isn't the same thing as do nothing. A lot of money can be made in real estate.

    Start small. Forget about gurus and BRRRR and all the other hype and nonsense you hear all over the place (including around here). Find one decent little house in a decent area that you can clean up and rent for a reasonable amount of money. Don't try to hit a grand slam - just put the ball in play. Accept that you're going to make some mistakes. You're going to improve things that don't get you any more rent and you're going to cheap out on things you should have replaced. You'll probably pick at least one tenant that's not ideal. You'll be here every other day asking about collecting rent and vaping in the house and sneaking in dogs and complaining neighbors and a thousand other things you don't even know about. All of that is OK. It is part of the learning process.

    Real estate is a long game. If you buy carefully, select tenants carefully, and hold long enough there's almost no way to lose money. Almost always the money lost in real estate is when you have to sell when the timing is not ideal. Think of it this way - if you bought a house on a 15 year note, where the rent didn't put a dime in your pocket but at least covered your costs, in 15 years without doing anything else you have an asset worth probably at least your initial cost + inflation, free and clear, paid for by your tenants. And you didn't even have to commit very much of your own money because the bank loaned it to you. And you got tax breaks along the way from the government. 

    Podcast Guest on Show #243
    Skyline Properties
    View Page
    5Reply
  • Bill DiFilippis
    Member since 2026 · 12 posts · 6 votes
    2mo

    I'm a deal desk manager / UW - I can help answer questions if you're ever looking finance! Just let me know! 

    1Reply
  • Ken M.
    Investor · Get yourself trained before doing something inadvisable. · Member since 2024 · 3k+ posts · 1k+ votes
    2mo
    Quote from @Samuel Tupy:

    Hey, I'm Sam!

    I want to buy my first investment property, but I'm so afraid I'll mess it up.

    I've been interested in real-estate for a few years, but for the first time, I find myself in a place where I think it could actually be possible.  I have a few grand in cash set aside and a little equity in my current home I could use toward an investment property.

    My brother-in-law has seen great success with the BRRRR method in NC over the last few years and I would like to try my hand. I'm just nervous about such a big investment. I fear the possibility that I could overlook something on my first investment that would shut the door on future opportunities altogether.

    I have 3 young kids and I'm motivated by a desire to give them opportunities and stability I never had. My wife and I are in our early 30s and we have steady income and a start at retirement.  I know rationally, this is a good base to build from, but I can't shake the sense that one bad bet when I'm first starting out could shake that foundation entirely.

    Do you have any tips to get over first-time jitters?  What mindset did you cling to in starting out?

    I've started this journey by reaching out to a handful of real-estate professionals I know and asking for any tips they can give me and it's given me a little more confidence.  My goal right now is to learn all I can... that's how I ended up here.

    I would love to hear any other advice you would offer a newbie like myself!

    Same way you learned to swim. You jump in. Smart new investors have an experienced investor at their side with a rope.
    1Reply
  • Bruce WoodruffPro Member
    Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
    2mo

    You just have to do it....Real Estate is a safer bet than a lot of investments because, hey.... at least you have a property if things don't go as planned! And you have a wealth of info and help right here....none of us had that, we were really swimming alone.

    To paraphrase an old quote: The only bad deal is the one you didn't do.....

    4Reply
  • Gabriel Reyes
    Member since 2024 · 22 posts · 12 votes
    2mo

    Hey Sam, that mix of "the math makes sense" but "what if I mess it up" is such a common place to be starting out.

    One thing that's true regardless of mindset: a lot of first-deal fear comes from uncertainty about the unknowns — is this market actually solid, am I missing something about the numbers. That's a solvable problem with research, even if the emotional part isn't fully solvable that way. Sounds like you're already doing that by talking to people and learning as much as you can before jumping in, which is exactly the right instinct.

    Wishing you good luck with the first one!

    1Reply
  • Tyler Nash
    Forest Lake, MN · Member since 2017 · 21 posts · 13 votes
    2mo

    Hey Sam, local Twin Cities investor and agent here. Glad to hear you're looking at jumping in! Some of the advice I can give you is that if you take a long-term mindset approach, it feels much better and much more worth it than thinking short term. When stuff hits the fan, and you're just thinking about the here and now, that's what causes people to get out. Think long term, wealth is built long term, and the problems feel small in the grand scheme.

    Reach out if you want to chat, I'd love to help you get started down the right path and introduce you to some local people!

    1Reply
  • Travis Goodwin
    Wholesaler · Charleston WV · Member since 2026 · 219 posts · 121 votes
    2mo

    Sam, I think almost everyone who has been successful in real estate has felt exactly what you're feeling. The fact that you're thinking through the risks doesn't tell me you shouldn't invest. It tells me you're taking it seriously.

    One thing I'd caution against is feeling like your first deal has to be perfect. Mine definitely wasn't. The goal isn't to hit a home run. It's to make a smart, manageable decision that teaches you how the process works.

    Since you have a wife and three kids, I'd be even more focused on buying a deal that gives you plenty of room for error. Don't stretch yourself to make a deal work. If the numbers don't make sense, let it go. Another opportunity will come.

    You're already doing the right thing by asking questions and learning before jumping in. Keep building relationships with experienced investors, analyze as many deals as you can, and when you finally buy one, you'll be making a decision based on knowledge instead of emotion.

    You've got time. Real estate isn't a race.

    0Reply
  • Adam TafelBusiness Member
    Real Estate Agent · St. Paul, MN · Member since 2017 · 575 posts · 395 votes
    2mo

    Thanks for sharing!

    1. Who you choose to support you in this venture is the most important decision(s) you’ll make. Agent, lender, contractor, PM. Everyone should have a proven record of helping other clients achieve goals similar to yours.

    2. IF you are terrified BRRRRR might not be the route, but don't let me talk you out of it (I love BRRRRR deals). These deals need to have real nice margins, and these margins don't exist unless there is something REAL unappealing about the property. What if you started with a simple value-add 1-4 family deal in a Class A neighborhood?

    How to get over jitters? New investors are usually under 1 of 2 delusions . They are going to buy the “wrong” deal and it’s going to ruin their life, or they are going to find a “great” deal and it’s going to improve their life beyond their wildest Dreams. The reality is that solid deals are boring, they sustain themselves in the short/medium term and provide income and significant wealth over the long term.

    Early 30s with strong income is a great time to start! In my opinion you’d be better off buying a few quality properties rather than getting excited about high margin deals, but who knows…

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    • Samuel Tupy
      OP
      Bloomington, MN · Member since 2026 · 5 posts · 10 votes
      2mo
      Quote from @Adam Tafel:

      Thanks for sharing!

      1. Who you choose to support you in this venture is the most important decision(s) you’ll make. Agent, lender, contractor, PM. Everyone should have a proven record of helping other clients achieve goals similar to yours.

      2. IF you are terrified BRRRRR might not be the route, but don't let me talk you out of it (I love BRRRRR deals). These deals need to have real nice margins, and these margins don't exist unless there is something REAL unappealing about the property. What if you started with a simple value-add 1-4 family deal in a Class A neighborhood?

      How to get over jitters? New investors are usually under 1 of 2 delusions . They are going to buy the “wrong” deal and it’s going to ruin their life, or they are going to find a “great” deal and it’s going to improve their life beyond their wildest Dreams. The reality is that solid deals are boring, they sustain themselves in the short/medium term and provide income and significant wealth over the long term.

      Early 30s with strong income is a great time to start! In my opinion you’d be better off buying a few quality properties rather than getting excited about high margin deals, but who knows…


       Adam!

      Thank you for the thoughtful advice.  I'm working hard to find the right contacts in my area as we speak.

      Regarding your second note: I'm growing more and more comfortable with the idea of taking on a distressed home so long as the math works out, but I'm not opposed to a 1-4 family unit either! The biggest draw toward BRRRR (with investor funding to kickstart) is that it would allow us to keep liquidity so we aren't stalled out after our first investment.

      If you don't mind my asking, where do you find the right leads?
      It may just be the Minnesota market, but I'm struggling to find good BRRRR or multi-family opportunities where I can build in my own equity. I figure a lot of that stems from a still limited network, but I'd love to know if you have any recommendations for lead generation that I may not have considered!

      0Reply
  • Nicholas L.Pro Member
    Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
    2mo

    @Samuel Tupy

    "a few grand in cash" is not enough, and the equity in your home is very expensive to tap.

    I don't know much about you, but based on that you do not have enough to start.  period.

    BRRRRs can be painful and time consuming and they absolutely require actual cash.

    hope that helps

    happy to answer any questions you have

    2Reply
  • Henry Lazerow
    Real Estate Agent · Chicago, IL · Member since 2017 · 2k+ posts · 2k+ votes
    2mo

    I have worked with a ton of investors and the most succesful ones are those that were not picky and just bought solid properties with average cashflow in good areas to hold long term and did cash out refis as they appreciate over the years. The ones looking for home runs or trying to do flips, brrs, etc. barely were able to scale there just arent that many home run type deals in good areas. The long term compounding is all that really matters so just focus on getting your first one in a good area you are comfortable with, if the tenants are same social class as you these buildings are very easy to manage so I always recommend that class of area. Try to buy a 4 unit it gives you some scale and higher returns vs a house, etc. 

    1Reply
  • Tim SwierczekPro Member
    Lender · White Bear Township, MN · Member since 2016 · 1k+ posts · 1k+ votes
    2mo

    @Samuel Tupy concerns are normal, but that doesn't mean they should hold you back. The way to reduce risk is to reduce risky variables.  

    A BRRRR deal out of state is much more complicated and risky than the same deal in your home market. And, a more traditional buy-and-hold with little to no rehab is much simpler and less risky.

    The Twin Cities has a vibrant investor meet-up market. You can meet many investors and investor-focused service providers at these meetings. I can't post them here, but if you PM me, I'll send you a list of several that would be worth checking out.

    0Reply
  • Travis TimmonsPro Member
    Rental Property Investor · Ellsworth, ME · Member since 2021 · 1k+ posts · 2k+ votes
    2mo

    The "you just have to jump in" crowd is oversimplifying the process without knowing if you have enough money to do this without borrowing against and risking your primary home. A HELOC or refi against your primary is not cash. Do not act as if it is a pile of money that needs to be deployed. You are risking your family's home on a novel and new idea hoping that it works.

    I got started with a live in flip bc I did not have a lot of cash, could access low down payment loans bc it was owner occupied, and it is lower risk. I'm currently doing my 3rd one 15 years later. We had a serious delay on a bathroom reno. The carrying costs would have killed us if it was a standard BRRRR or flip. Since we live here, I just had to share a bathroom with my wife and 2 kids for 4-5 months - inconvenient but will not affect the returns. And when it is over, you get a pile of tax free cash.

    2Reply
  • Michael S.
    Huntsville, AL · Member since 2018 · 577 posts · 864 votes
    2mo

    Read what @Nicholas L. and @Travis Timmons said multiple times.

    Here's your quote: "I have a few grand in cash set aside and a little equity in my current home I could use toward an investment property."

    Here's the honest answer - you aren't ready financially.  

    Let's say you own a property right now.

    Can you handle a roof leak financially, which could be anything from hundreds to thousands?

    Could you handle an HVAC going out tomorrow, and be able to replace it with your own cash reserves (not a HELOC on your personal property or your retirement account)?

    Can you handle a tree getting knocked over in a storm and blocking the driveway?

    Can you handle replacing an electrical panel?

    Those are all real phone calls I've gotten from the property manager numerous times over the past 9 years I've been doing this.  

    If you don't have a minimum of 10k available to deploy at a moment's notice for your rental, you're not ready.  

    Once you have the financial reserves, then you're ready to write an offer.

    1Reply
    • Tyler Nash
      Forest Lake, MN · Member since 2017 · 21 posts · 13 votes
      2mo
      Quote from @Michael S.:

      Read what @Nicholas L. and @Travis Timmons said multiple times.

      Here's your quote: "I have a few grand in cash set aside and a little equity in my current home I could use toward an investment property."

      Here's the honest answer - you aren't ready financially.  

      Let's say you own a property right now.

      Can you handle a roof leak financially, which could be anything from hundreds to thousands?

      Could you handle an HVAC going out tomorrow, and be able to replace it with your own cash reserves (not a HELOC on your personal property or your retirement account)?

      Can you handle a tree getting knocked over in a storm and blocking the driveway?

      Can you handle replacing an electrical panel?

      Those are all real phone calls I've gotten from the property manager numerous times over the past 9 years I've been doing this.  

      If you don't have a minimum of 10k available to deploy at a moment's notice for your rental, you're not ready.  

      Once you have the financial reserves, then you're ready to write an offer.


       I would agree with this. The added stress of no reserves is a tough one to overcome. 

      0Reply
  • Emanuele Mayer
    Lender · Member since 2022 · 72 posts · 19 votes
    2mo

    Welcome, Sam! It sounds like you’re approaching this the right way by taking the time to learn before jumping in. Don’t feel like your first deal has to be perfect—focus on finding one where the numbers make sense and have a team you can lean on. If financing ever comes up, we help investors with DSCR loans, Fix & Flip financing, and other investment loan programs. Happy to connect and be a resource. Best of luck on your first deal!

    1Reply
  • Jimmy LieuBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2019 · 3k+ posts · 2k+ votes
    2mo
    Quote from @Samuel Tupy:

    Hey, I'm Sam!

    I want to buy my first investment property, but I'm so afraid I'll mess it up.

    I've been interested in real-estate for a few years, but for the first time, I find myself in a place where I think it could actually be possible.  I have a few grand in cash set aside and a little equity in my current home I could use toward an investment property.

    My brother-in-law has seen great success with the BRRRR method in NC over the last few years and I would like to try my hand. I'm just nervous about such a big investment. I fear the possibility that I could overlook something on my first investment that would shut the door on future opportunities altogether.

    I have 3 young kids and I'm motivated by a desire to give them opportunities and stability I never had. My wife and I are in our early 30s and we have steady income and a start at retirement.  I know rationally, this is a good base to build from, but I can't shake the sense that one bad bet when I'm first starting out could shake that foundation entirely.

    Do you have any tips to get over first-time jitters?  What mindset did you cling to in starting out?

    I've started this journey by reaching out to a handful of real-estate professionals I know and asking for any tips they can give me and it's given me a little more confidence.  My goal right now is to learn all I can... that's how I ended up here.

    I would love to hear any other advice you would offer a newbie like myself!

    Welcome to the community, Sam! What you're feeling is completely normal, and honestly I'd be more concerned if you weren't asking these questions. The goal isn't to avoid all risk—it's to manage it. One thing that helped me was realizing I didn't need to hit a home run on my first deal. I just needed to buy a property that made sense on paper with conservative numbers, leave room for unexpected repairs, and have multiple exit strategies if things didn't go exactly as planned. Keep plenty of reserves, don't stretch your budget, and don't let FOMO push you into a deal that doesn't meet your criteria. Since you're interested in BRRRR, make sure you understand the rehab costs and refinance numbers before you buy, not after. If you're still deciding on markets, I moved from Portland to Columbus in 2020 to invest, and it's been a great place for long-term rentals. Between the steady job growth, population growth, major employers like Intel, Amazon, Google, Honda, and Nationwide, and affordable properties that can still cash flow, it's a market that's worth a look. Happy to connect and answer any questions you have!
    [email protected]614-300-7535
    Jimmy Lieu, Red 1 Realty4.9120 Reviews
    WebsiteView Page
    1Reply
  • Arman AhmedPro Member
    Real Estate Agent · Columbus Cleveland Dayton, OH · Member since 2024 · 2k+ posts · 915 votes
    2mo
    Quote from @Samuel Tupy:

    Hey, I'm Sam!

    I want to buy my first investment property, but I'm so afraid I'll mess it up.

    I've been interested in real-estate for a few years, but for the first time, I find myself in a place where I think it could actually be possible.  I have a few grand in cash set aside and a little equity in my current home I could use toward an investment property.

    My brother-in-law has seen great success with the BRRRR method in NC over the last few years and I would like to try my hand. I'm just nervous about such a big investment. I fear the possibility that I could overlook something on my first investment that would shut the door on future opportunities altogether.

    I have 3 young kids and I'm motivated by a desire to give them opportunities and stability I never had. My wife and I are in our early 30s and we have steady income and a start at retirement.  I know rationally, this is a good base to build from, but I can't shake the sense that one bad bet when I'm first starting out could shake that foundation entirely.

    Do you have any tips to get over first-time jitters?  What mindset did you cling to in starting out?

    I've started this journey by reaching out to a handful of real-estate professionals I know and asking for any tips they can give me and it's given me a little more confidence.  My goal right now is to learn all I can... that's how I ended up here.

    I would love to hear any other advice you would offer a newbie like myself!


    Sam, the fact that you're nervous actually shows you're taking it seriously. Almost every investor remembers that first deal because there are a lot of unknowns, but the key is not trying to know everything yourself, it's building a team and having a solid process. Start small, underwrite a lot of deals, and don't rush into something just because you want to get started. Since you're already open to BRRRR, it may also be worth comparing Midwest markets, where lower entry costs can create more room for learning and building cash flow while you grow. Your first deal doesn't have to be perfect, it just needs to be a smart one.
    [email protected]614-418-6081
    1Reply
  • Cory Mcclure
    Lender · Member since 2025 · 9 posts · 7 votes
    2mo

    Welcome, Samuel! Exciting time. My advice would be to spend less time trying to predict the perfect market and more time learning how to analyze deals confidently. Great deals can happen in any market if the numbers make sense. Build your team early (agent, lender, insurance, contractors, etc.) so when the right opportunity comes along, you're ready to move. Best of luck!

    1Reply
  • Mohammed Rahman
    Real Estate Broker · New York, NY · Member since 2020 · 2k+ posts · 1k+ votes
    2mo

    Hey Samuel,

    First off, I think the fact that you're nervous is actually a good sign. It means you're taking the investment seriously and understand that there is real risk involved.

    At the same time, at some point you have to take action. A lot of people spend years learning, listening to podcasts, and researching, but never actually make a move because they're waiting to feel 100% ready. The reality is you probably never will.

    That's been my approach in real estate. I've learned a lot by doing. I'm currently working on my first flip, and I had never done one before either. I didn't feel completely ready, but I had a solid understanding of the fundamentals and found someone else who was in a similar position and willing to take that calculated risk with me.

    The key is not jumping in blindly. Do your homework, understand your numbers, build a good team, and have a plan for when things don't go perfectly. But don't let the fear of making a mistake keep you from gaining the experience you need.

    It sounds like you're already doing the right things by networking and educating yourself. Keep learning, but don't be afraid to take that first step when the right opportunity comes along.

    All the best! Feel free to reach out and connect with me - my DMs are always open!

    0Reply
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