Brand New Here
Smithtown, NY · Member since 2016 · 3 posts · 6 votes
Brand New Here
Most Popular Reply
Shiloh LundahlPro Member
Rental Property Investor · Gilbert, AZ · Member since 2016 · 3k+ posts · 4k+ votes@Jonathan Aronson here are three questions to ask yourself to help you get started.
Where? Which location would you like to invest in? It's easier to invest where you live logistically but it might not be easier financially. Do you live in a state that is supportive of investors or that is negative towards investors?
What? Which type of asset class interested you the most? do you like single-family homes? Do you like small multifamily plexes of two to four unit units? do you like midsize multifamily apartments of 30 - 50 units or maybe you like large multifamily complexes of 100 plus units. What about mobile home parks, are you interested in those? maybe you like more hospitality and something nicer that you can have as a vacation rental and you can rent it out on Airbnb or VRBO? You can also get something that has many bedrooms and you can do a rent by the room model, which is what a lot of people like today because it produces higher cash flow. and there's a few other different asset classes as well that I haven't mentioned. figure out what kind of asset would fit well with your personality and matches the amount of involvement you would like in investing.
How active? Some investors are very hands-on in every aspect of the investing process. And some investors are almost completely hands-off and they will lend to other investors that are more hands-on and they will get a return on their money. So they basically become money leaders. they lend money to individual investors or they put their money in a fund or they put their money in a syndication if they want to be more passive and have an operator do all of the hands-on work. It's really important if you got the passive way that you research the operators to see what their track record is and that you research the asset and that you consider the market. You will have the best chance successfully investing in other people's deals if the asset is goof, if the operator is good, and if the market is favorable to the asset. if one of these isn't good, then it's possible that you don't get a good return and you naught even notice get your whole investment back. And there are also some investors that are somewhere in the middle of active and passive. you just need to choose how active you want to be?
Why real estate? The last question that probably should be the first question is why do you want to invest in Real Estate specifically? What do you want the Real Estate to do for you? is it easy to get lost in the world of Real Estate because there's so many types of real estate and so many ways of doing it. So it is important to hold onto what it is that you want the Real Estate to do for you so you don't get lost somewhere along the way and you have Real Estate help support you in reaching your goals.
Good luck to you. Let me and other know if we can help you.
12 Replies
- 2moBill HamptonBusiness MemberAccredited Investment Fiduciary, AIF®, Financial Planner, Tax Strategist, Real Estate Investor · Atlanta, GA · Member since 2012 · 2k+ posts · 979 votes
Welcome to Bigger Pockets. House hacking or buy-and-hold rentals are a great place to start.
Good luck investing.
Hampton Tax and Financial Services LLC4.7106 Reviews - Wholesaler · Charleston WV · Member since 2026 · 246 posts · 137 votes2mo
Jonathan, welcome. Before choosing a strategy, get clear on how much time, money, and risk you’re comfortable putting into real estate. Someone with limited money but extra time may start with wholesaling, while someone wanting long term wealth and steady income may prefer rentals. Flipping requires more capital, experience, and risk tolerance.
Don’t try to learn every strategy at once. Pick one that fits your current situation, study the basic process, and connect with investors who are actively doing it in your market. What are you hoping real estate will eventually do for you, create additional income, replace your job, or build long term wealth?
- Smithtown, NY · Member since 2016 · 3 posts · 6 votes2moIs it unusual or unheard of to say all 3. I would really love to leave a legacy for my family. In the meantime I would really love to eventually change my career. And of course, in the meantime, create additional income. That even sounds a bit overzealous just writing in. Your thoughts?
Quote from @Travis Goodwin:
Jonathan, welcome. Before choosing a strategy, get clear on how much time, money, and risk you’re comfortable putting into real estate. Someone with limited money but extra time may start with wholesaling, while someone wanting long term wealth and steady income may prefer rentals. Flipping requires more capital, experience, and risk tolerance.
Don’t try to learn every strategy at once. Pick one that fits your current situation, study the basic process, and connect with investors who are actively doing it in your market. What are you hoping real estate will eventually do for you, create additional income, replace your job, or build long term wealth?
- 2moAbel CurielBusiness MemberReal Estate Agent · Queens, NY · Member since 2016 · 2k+ posts · 1k+ votes
Quote from @Jonathan Aronson:
Is it unusual or unheard of to say all 3. I would really love to leave a legacy for my family. In the meantime I would really love to eventually change my career. And of course, in the meantime, create additional income. That even sounds a bit overzealous just writing in. Your thoughts?Quote from @Travis Goodwin:
Jonathan, welcome. Before choosing a strategy, get clear on how much time, money, and risk you’re comfortable putting into real estate. Someone with limited money but extra time may start with wholesaling, while someone wanting long term wealth and steady income may prefer rentals. Flipping requires more capital, experience, and risk tolerance.
Don’t try to learn every strategy at once. Pick one that fits your current situation, study the basic process, and connect with investors who are actively doing it in your market. What are you hoping real estate will eventually do for you, create additional income, replace your job, or build long term wealth?
Additional income will always help. Even if it isn't your own income i.e. finding captial partners.
It is not unusual for people to say/try all 3 strategies; however, this is not always recommended. Focusing on 1 will usually deliver the best results.
For most people, which strategy they begin with depends on their situation, accessible capital, and their goals.
REbuild Team - eXp Realty5234 Reviews
- 2moWale LawalBusiness MemberReal Estate Broker · Houston | Dallas | Austin, TX · Member since 2018 · 5k+ posts · 2k+ votes
Welcome to BP! First of all, it is important for you to estimate your budget, time frame of operation and your goals. Are you trying to earn some profits, increase your networth or both? Selecting one approach and learning to assess them correctly is what you need to do now.
Good luck!
NETWORTH BUILDERS5236 Reviews - 2moAbel CurielBusiness MemberReal Estate Agent · Queens, NY · Member since 2016 · 2k+ posts · 1k+ votes
Quote from @Jonathan Aronson:
Good morning. I am brand new here and to real estate investing. I am finally ready to get started and I am not even sure what I am looking to invest. Looking for advice on how to navigate all of the information on here. Hopefully something that will narrow down what type of investments make the most sense for me. Thank you in advance.
Hello Jonathan!
To navigate the information on BiggerPockets, I recommend:
1. Use the search feature. Type some of your questions in here and related forum posts. You'll either find the answer to your question, OR you'll find someone who has the answer.
2. Set up keyword alerts. You'll be notified by BP anytime your keywords are mentioned on 1 of these forum posts. Great way to stay current with your topics and areas of interest.As far as narrowing down investment types, many investors get started by using the househack method. This strategy works with low down-payment loan options and will give you acquisition and property management experience.
If you have other experience/skill sets (i.e., construction, marketing, sales), then houseflipping or wholesaling could make sense in order to get started.
All the best!
Abel
REbuild Team - eXp Realty5234 Reviews- 2moLogan HelmerickPro MemberNew to Real Estate · Denver, CO · Member since 2024 · 18 posts · 19 votes
Quote from @Abel Curiel:
Quote from @Jonathan Aronson:
Good morning. I am brand new here and to real estate investing. I am finally ready to get started and I am not even sure what I am looking to invest. Looking for advice on how to navigate all of the information on here. Hopefully something that will narrow down what type of investments make the most sense for me. Thank you in advance.
Hello Jonathan!
To navigate the information on BiggerPockets, I recommend:
1. Use the search feature. Type some of your questions in here and related forum posts. You'll either find the answer to your question, OR you'll find someone who has the answer.
2. Set up keyword alerts. You'll be notified by BP anytime your keywords are mentioned on 1 of these forum posts. Great way to stay current with your topics and areas of interest.As far as narrowing down investment types, many investors get started by using the househack method. This strategy works with low down-payment loan options and will give you acquisition and property management experience.
If you have other experience/skill sets (i.e., construction, marketing, sales), then houseflipping or wholesaling could make sense in order to get started.
All the best!
Abel
Welcome! Like Abel says, the "keyword alerts" are going to be your best friend when it comes to navigating the forums and getting relevant information from others in the community.
When it comes to finding the strategy that might fit best, I find that Dave and Henry have this great video I always refer to as a new investor. It's timestamped in the "info" section, so that might be useful to save some time!
Cheers and good luck!
- 2moAlan FaitelPro MemberReal Estate Coach · estero FL · Member since 2015 · 290 posts · 45 votes
Take your time. Listen to some podcasts. Don't put all your cash in one deal or coaching program. See if you can watch someone else play the game with real numbers.
- 2moArman AhmedPro MemberReal Estate Agent · Columbus Cleveland Dayton, OH · Member since 2024 · 2k+ posts · 958 votes
Quote from @Jonathan Aronson:
Good morning. I am brand new here and to real estate investing. I am finally ready to get started and I am not even sure what I am looking to invest. Looking for advice on how to navigate all of the information on here. Hopefully something that will narrow down what type of investments make the most sense for me. Thank you in advance.
I’d start by figuring out your goals, available capital, time commitment, and how hands-on you want to be before choosing a strategy. Then pick one approach and learn it well instead of trying to absorb everything at once. Analyze real deals, talk to investors, and learn from people actually doing it. And don’t feel limited to New York; if you’re open to out-of-state investing, Midwest markets can be worth exploring for lower entry costs and cash-flow opportunities. - 2moDrew SygitBusiness MemberProperty Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
Quote from @Jonathan Aronson:
Good morning. I am brand new here and to real estate investing. I am finally ready to get started and I am not even sure what I am looking to invest. Looking for advice on how to navigate all of the information on here. Hopefully something that will narrow down what type of investments make the most sense for me. Thank you in advance.
A common issue, so Copy & Paste info below:
You’re ALWAYS better off investing locally, where it’s easier to:
- Learn the market
- Network to find deals
- Network to find contractors
- Be more hands-on
- Driveby property to keep tabs on it
- Network to find a decent Property Management Company (PMC)
Next best location is somewhere else you lived, where you have an existing network of family & friends to help you as accomplish the above list as needed.
If you invest OOS, your biggest challenge won't be finding properties to meet your goals on paper, it’ll be successfully building a knowledgeable & trustworthy local team.
The biggest mistake we see OOS investors making in our market, over and over again, is not fully understanding Neighborhood/Property/Tenant Classes and how they impact your probability of success!
They all run their ROI numbers assuming Class A results – when buying Class B, C & even D rentals.
Then they’re shocked when their performance expectations aren't met😞
If you choose to invest OOS, and have little to no landlord experience, we highly recommend targeting Class B Neighborhoods/Properties/Tenants. If you target Class C, you better be prepared emotionally & financially for plenty of challenges.
You can find Class B properties in the Midwest to BRRRR, but it will take more digging and YOU will need to understand how to analyze & identify them - because a lot of agents, wholesalers, PMCs, etc. will try to sell you Class C or D misrepresented as Class B:
- Many of them don't know/care what Class the properties are, so they're incompetent.
- Others know exactly what they are doing, so should be labeled as crooks!
EITHER WAY YOU LOSE!
Why is Property Class so important for investors to understand and apply in their investing strategies?
Because the Property Class dictates the Class of the tenant pool that the property will attract.
The Tenant Class greatly impacts rental income stability and property maintenance/damage by tenants.
Both Property Class and Tenant Class will affect what type of contractors, handymen and property management companies you should target and be willing to deal with a property.
The Property Class will also impact the maintenance & renovations you do to, “Maintain to the Neighborhood/Market”.
Why is that important?
Well, if you buy & renovate a property in Class D area to Class A standards, what Tenant Class will actually rent it?
Or, if you put several Class D tenants in a Class A four-plex, what do you think will happen to the property?
What do you think will happen if you rehab a Class D rental to Class A standards?
So, if you fail to apply the correct assumptions to a property, your expectations won’t be met, and it may even be a financial disaster.
We use the following to rank Property Classes, in order of importance:
- Property Tenant Pool: closely linked to location, but not always.
- Property Location: closely linked to tenant pool, but not always.
- Property Condition & Amenities: it’s important to, “Maintain to the Neighborhood/Market.”
Key metrics for each Property Class:
Class A Properties:
Tenant Pool: Majority of FICO scores 680+, no convictions/evictions in last 7 years.
Tenant Default: 0-5% probability of eviction or early lease termination.
Section 8: Class A rents are too high and won’t be approved.
Vacancies: 5-10%, depending on market conditions.
Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Class B Properties:
Tenant Pool: Majority of FICO scores 620-680, some blemishes, no convictions/evictions in last 5 years.
Tenant Default: 5-10% probability of eviction or early lease termination.
Vacancies: 10-15%, depending on market conditions.
Cashflow vs Appreciation: Typically, 1-3 years for positive cashflow, balanced amounts of relative rent & value appreciation.
Section 8: Class B rents are usually too high for the Section 8 program.Class C Properties:
Tenant Pool: Majority of FICO scores 560-620, many blemishes, but should have no convictions/evictions in last 3 years. Verifying recent 2-years of rental history very important! Same for 2-years of job/income stability.
Tenant Default: 10-20% probability of eviction or early lease termination.
Section 8: Class C rents usually meet program requirements, proper screening still recommended.
Vacancies: 10-20%, depending on market conditions and tenant screening.
Cashflow vs Appreciation: Should cashflow immediately, at the lower end of relative rent & value appreciation.
Class D Properties:
Tenant Pool: Majority of FICO scores under 560, little to no good tradelines, lots of collections & chargeoffs, but should have no convictions/evictions in last 12 months. Verifying last 2-years of rental history and income/employment extremely important to find the “best of the worst”.
Tenant Default: 20-30% probability of eviction or early lease termination.
Section 8: Class D rents meet program requirements, often challenges to pass Section 8 inspection.
Vacancies: 20%+, depending on market conditions and tenant screening.
Cashflow vs Appreciation: Typically, all cashflow with little, maybe even negative, relative rent & value appreciation.
Where did we get our FICO credit score information from?
Check out this chart:
FICO Score
Pct of Population
Default Probability
800 or more
13.00%
1.00%
750-799
27.00%
1.00%
700-749
18.00%
4.40%
650-699
15.00%
8.90%
600-649
12.00%
15.80%
550-599
8.00%
22.50%
500-549
5.00%
28.40%
Less than 499
2.00%
41.00%
Make sure you understand the Class of properties you are looking at and the corresponding results to expect.
For example, Metro Detroit has 132 cities and the City of Detroit 183 Neighborhoods, which we’re analyzing and classifying to make better investing decisions.
Horror Stories from those that did NOT Understand What they were Buying:
https://www.biggerpockets.com/forums/48/topics/1137397-baltimore-a-path-to-never-ending-pain
https://www.biggerpockets.com/forums/432/topics/1231840-sell-at-a-loss-or-rent-at-a-loss
https://www.biggerpockets.com/forums/311/topics/840134-memphis-turnkey-tenant-turnover-costs
Logical Property Management4.9460 Reviews - 2moJames WachobBusiness MemberReal Estate Broker · Memphis, TN · Member since 2015 · 1k+ posts · 890 votes
Hey @Jonathan Aronson! Welcome to BiggerPockets! There's definitely a lot of information out there, so I'd start by narrowing down your goals before worrying about a specific strategy. Think about how much capital and time you have available, whether you want cash flow or long-term appreciation, and how hands-on you want to be. That will help you decide between options like LTRs, house hacking, BRRRR, flips, or other strategies.
I’d also recommend picking one market and learning it deeply rather than trying to understand everything at once. Analyze deals regularly, talk with local investors, and start building your team before you’re ready to buy.
I’m a real estate agent based in Memphis and work with out-of-state investors building rental portfolios. Memphis is one market worth exploring if cash flow and an affordable entry point are priorities. If you ever want to learn more about the market or compare strategies, I’d be happy to connect and help however I can. Best of luck getting started! - 2moShiloh LundahlPro MemberRental Property Investor · Gilbert, AZ · Member since 2016 · 3k+ posts · 4k+ votes
@Jonathan Aronson here are three questions to ask yourself to help you get started.
Where? Which location would you like to invest in? It's easier to invest where you live logistically but it might not be easier financially. Do you live in a state that is supportive of investors or that is negative towards investors?
What? Which type of asset class interested you the most? do you like single-family homes? Do you like small multifamily plexes of two to four unit units? do you like midsize multifamily apartments of 30 - 50 units or maybe you like large multifamily complexes of 100 plus units. What about mobile home parks, are you interested in those? maybe you like more hospitality and something nicer that you can have as a vacation rental and you can rent it out on Airbnb or VRBO? You can also get something that has many bedrooms and you can do a rent by the room model, which is what a lot of people like today because it produces higher cash flow. and there's a few other different asset classes as well that I haven't mentioned. figure out what kind of asset would fit well with your personality and matches the amount of involvement you would like in investing.
How active? Some investors are very hands-on in every aspect of the investing process. And some investors are almost completely hands-off and they will lend to other investors that are more hands-on and they will get a return on their money. So they basically become money leaders. they lend money to individual investors or they put their money in a fund or they put their money in a syndication if they want to be more passive and have an operator do all of the hands-on work. It's really important if you got the passive way that you research the operators to see what their track record is and that you research the asset and that you consider the market. You will have the best chance successfully investing in other people's deals if the asset is goof, if the operator is good, and if the market is favorable to the asset. if one of these isn't good, then it's possible that you don't get a good return and you naught even notice get your whole investment back. And there are also some investors that are somewhere in the middle of active and passive. you just need to choose how active you want to be?
Why real estate? The last question that probably should be the first question is why do you want to invest in Real Estate specifically? What do you want the Real Estate to do for you? is it easy to get lost in the world of Real Estate because there's so many types of real estate and so many ways of doing it. So it is important to hold onto what it is that you want the Real Estate to do for you so you don't get lost somewhere along the way and you have Real Estate help support you in reaching your goals.
Good luck to you. Let me and other know if we can help you.
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