All Forum Posts by: Danielle Jackson

Agree with much of the advice thus far. Your decision certainly depends on your financial situation beyond having the reserves for down payment. Secondly, given your background, it doesn't seem necessary to need or have to purchase a turn-key property for your first investment. Forced appreciation is a great strategy in this market. 

Make sure your property cash flows and that you have the reserves to navigate market corrections. Lastly and maybe most importantly, find a GREAT lender, especially if you go the BRRRR route.

Congrats on making the decision to invest and taking steps (saving cash) to get there. 

You will quickly learn everyone's path is different. For me, I didn't purchase my first rental as a rental, I turned my first home into an investment property when I decided to become an investor. Many start by house hacking or purchasing a duplex and living in one side and renting out the other. The first steps are making sure you know the property type you want to invest in, your investment strategy, and the market you want to invest. I also suggest you practice analyzing deals so you know a good opportunity based on numbers. Get connected in the local market you are looking to invest. You will find a wealth of knowledge from those meet ups. Best of luck! 

Congrats! Excited to hear about your journey. 

@Kaushik Mahorker if you take Joe's advice, just let the seller know that you aren't closing until the repairs are completed. Make sure they know you aren't expecting them to come out of pocket, but rather willing to increase the purchase price to cover the expense (+10%) of cost. The only issue I've come up against when using this strategy, is some sellers don't want to be responsible for the work prior to closing. 

Remember, the worst they can say is no. Then you will have to re-evaluate your path forward. 

Have you considered passive investing (unless you want to continue building your active portfolio)? A million in passive could generate a nice monthly cash flow. 

If investing is your goal, start living your life now with the intent of becoming one. Work on holding a stable job, saving up for a down payment (FHA is a great low-down payment option), and ensure you continue focusing on good credit habits. Set goals for yourself.

Have you considered a duplex? A property where you can achieve both - making it home, and renting out the other side? A lot of variables prior to making any decision (markets, capital for down payments, reserves, etc), but so many investors get started with this type of structure. 

This is exactly how we (my husband and I) started our SFR investment journey. Be sure you run the numbers and that it works from a cash flow perspective. We ended up selling that property within the time frame to utilize the 2 out of 5-year rule and made $120k when we sold it.....with no capital gains tax. Good luck!

Congrats on your purchase. As others have stated, refinancing to access your capital is an ideal way to provide purchasing power for your first investment. While you do have an incredible rate, unless the rates have increased to a point where you aren't able to achieve a greater rate of return by investing, then in my opinion its worth the consideration to refi and pull your cash out. Make it work for you! 

Florida is also very landlord friendly, and no state income tax.