All Forum Posts by: Arman Ahmed

@Julian Perez

Welcome, Julian! Great to see you diving in. A 2–4 unit is a smart starting point since you get the benefit of multiple income streams while still qualifying for residential financing. The biggest thing for that first deal is narrowing your focus—decide on your budget, target cash flow, and whether you’ll invest locally or out of state. A lot of new investors in higher-cost markets like NY eventually look toward the Midwest for more affordable entry points and stronger cash flow, but either way, your first step is getting really clear on your buy box. Once that’s defined, it’s much easier to filter deals and know when to pull the trigger.

@Darius Harper

Welcome, Darius! That’s a solid question and a common crossroads for a lot of new investors. Renting out your primary can be a great way to “accidentally” become a landlord and start building rental experience while keeping your existing financing in place. On the other hand, selling to tap into equity and redeploying it into multiple smaller rentals or a multifamily could accelerate your portfolio growth. A lot of investors in more expensive or lower-yield markets will cash out and shift that equity into the Midwest, where entry prices are lower and cash flow tends to be stronger. Either way, the key is running the numbers on both options so you can see which path builds long-term wealth faster for you.

@Juan Santos

That's a great position to be in—high credit, solid savings, no debt, and the VA loan option gives you a huge advantage. A lot of first-time investors use that VA loan to "house hack" a small multifamily (live in one unit, rent the others) or a single-family and then move later while keeping it as a rental. Another path, if you want to stay more hands-off, is looking at affordable Midwest markets where your $50K can stretch much further for down payments and reserves. The key is to decide whether you want to maximize cash flow right away or build long-term equity—once that's clear, it's easier to map your first move

@Robert McCallum

A lot of flippers bridge that gap with private money partners or short-term hard money, but one approach that works well—especially in more affordable Midwest markets—is combining hard money for the purchase/rehab with a private lender or HELOC to cover the gap. Since entry prices are lower there, the total capital required is less, making it easier to structure win-win partnerships or profit splits without overextending. Biggest lesson I've seen: make sure your numbers are conservative on ARV and rehab costs, so your financing strategy doesn't collapse if timelines stretch.

@Chelsea Coltman

Hi Chelsea, it’s very common for first-time investors in high-cost areas like Orange County to struggle with cash flow—prices are just high relative to rents. That’s why many investors start looking at Midwest markets, where purchase prices are lower and you can get positive cash flow even with a 20% down payment. Focusing on smaller single-family homes or duplexes there often lets you cover your mortgage, property management, and expenses while still generating income. It’s less about doing anything wrong and more about the market you’re targeting.

@Josh Dziama

Hi Josh, for your first rental, DSCR loans and hard money can be useful alternatives to conventional financing, especially if you want to reduce your cash outlay. DSCR loans focus on the property's cash flow rather than your personal income, which can make approval easier for investment properties. Hard money is faster and more flexible but usually comes with higher interest and shorter terms, so it's best for short-term flips or rehabs. Many investors also look at markets in the Midwest, where purchase prices are lower, allowing smaller down payments to cover cash-flowing single-family and small multifamily rentals.

@Preeti Sharma

Hi Preeti, BRRRR is a great strategy to build equity and cash flow. For out-of-state deals, many investors focus on markets like the Midwest where cash-flowing SFRs and small multifamily properties are more affordable and easier to manage remotely. Driving or flying occasionally helps, but you can also rely on trusted local contractors and property managers for inspections and rehab oversight. Starting with raw land can work, but many beginners see faster results with distressed properties that can be rehabbed and rented quickly. For financing, HELOCs can be useful, but you'll still usually need some cash down for the purchase and rehab. It's all about balancing leverage, risk, and speed to cash flow.

@Trevor Leb

Welcome, Trevor! Starting with single-family and small multifamily properties is a smart move, especially as you’re building your foundation. There’s a lot of opportunity in the Midwest for cash-flowing SFRs and small multifamily deals that can help you grow your portfolio while learning the ropes. Connecting with experienced investors, wholesalers, and agents in these markets can give you a head start. Happy to share insights and connect with like-minded investors.

@Bahaa Ashraf

Welcome to BiggerPockets, Bahaa! Sounds like you have solid experience building off-market pipelines — that’s such a key skill for any investor looking to scale. There’s a lot of opportunity in the Midwest for both residential and small multifamily deals, especially for those who know how to source and structure off-market opportunities. Happy to connect and share insights, and always open to exchanging ideas with fellow investors.

@Liz Camacho

Congrats on starting your investing journey, Liz! Having both realtor and investor experience gives you a huge advantage since you’ll be able to spot and evaluate deals faster than most. If you’re ever open to looking beyond your local market, the Midwest is a great place to build long-term wealth—properties are more affordable, cash flow is stronger, and appreciation has been steady. Defining your buy box early will help you filter opportunities and stay focused as you grow your portfolio. Excited to see where your journey takes you!