All Forum Posts by: Steve Daddeo

Hi Chad - I would consider two options if you don't have funds for the downpayment.

1) Partner Up. If you’re finding solid deals but short on funds, consider bringing in a partner. Someone provides the capital and you bring the deal and management. Just make sure it’s someone you trust, have the same goals, roles identify, and get everything in writing.

2) Creative Financing such as seller financing, private lenders, or even lease options might be worth exploring if the numbers make sense. Some sellers are flexible, but the deals are harder to find.

Let me know if this was helpful.

Hi Daniel -  When investing in less desirable areas, it really comes down to your goals and risk tolerance. These neighborhoods may provide better cash flow, but may usually come with more management challenges such as higher tenant turnover, late payments, or property maintenance issues, etc.

Its not necessarily a bad thing, as long as you’re prepared and willing to actively manage those situations. If you go this route, i would make sure you a) screen tenants carefully, b) strategically budget for maintenance and be proactive, and c) have a reliable team to that you can call on quickly 

Let me know if this was helpful.

Hey Sebastian - Congrats on getting started and doing your first house hack. Lots to unpack here, but here are few of my thoughts. 

Timing your next investment really depends on your goals and how comfortable you feel with your current setup. That said, one of your biggest factors will be financing. If you plan to house hack again, you'd be applying for another residential loan, and another mortgage in your name will increase your DTI, which can limit your borrowing power. However, if you decide not to house hack, you could go the DSCR (Debt Service Coverage Ratio) loan route, which qualifies you based on the income and expenses of the property itself rather than your personal income.

For renovations, focus on what actually moves the needle for rent value. The best ROI typically comes from adding bedrooms or bathrooms. Those additions can justify higher rents and appeal to a broader pool of tenants. Cosmetic upgrades like flooring, paint, or appliances are fine, but they mostly just keep you competitive with similar rentals, rather than allowing you to charge a premium.

If the HVAC and roof are functioning, I wouldn't let those delay your next investment. But budget for them in case they do fail or need repair. For instance, save 10% of your rental income for CapEx or maintenance.

Let me know if this was helpful and feel free to reach out if you ever want to talk through your situation more in-depth.

Hi Colton - welcome to the world of real estate investing. It's great to hear you're focused on multifamily and value-add deals.  There's a lot of potential in that space.

Since you're in the educational phase, I’d recommend getting familiar with underwriting multifamily deals, learning about financing options, and networking with local brokers who specialize in 5+ unit properties. Building relationships with property managers, contractors, and lenders early can also give you a big head start.

I’m happy to connect and chat more if you're looking for someone to bounce ideas off or talk strategy with. Feel free to DM me.

Hi Dax – If you have a property you want to make a move on but don’t have the capital, try to find a partner to help with the down payment. Offer them equity, cash flow, or a share of future appreciation. They provide the capital, and you do all the work. It’s faster than trying to save the full amount on your own.

A lot of people have money ('dry powder') waiting on the sidelines but don’t have the time or desire to find deals or manage properties.  So you can bring the hustle, they bring the funds. Start with friends, family, or people in your network who trust you and might be open to investing.

Let me know if this was helpful.

Hey Kenny - If I were 18 with $35K saved and interested in real estate, I’d lock in a stable W-2 job (like your electrician plan), live cheap, and save aggressively for 1–2 years. That gives you strong income history and credit for traditional financing, which is 10x easier than chasing creative financing as a first-timer.

For building an online presence, the key will be how consistent you are.  From every influencer I talked to that has a strong online presence, they all say similar things 1) being consistent with posting, and 2) adding high value content.  In the beginning, your online presence will be small and not gain more attention, but over time (years) your audience will grow.

As for your house hack, wait until you have solid W-2 income and 2 years of tax returns unless you find a truly great creative finance deal. Most creative financing deals go to experienced investors because they know how to structure and close them. You'll be better off house hacking with an FHA or conventional loan once you're financially ready. As an example, you can get a FHA loan with 5% down for a multi-family home, if you live in one of the units.

Overall, I think you'll find on this forum and anyone who is interested in real estate want to invest because longer term they don't want to trade time for money.  That said, it wont happen over night, but over the next decade you'll be a lot further along, compared to your peers, if you start to take action.  Most people talk about doing great things, few actually do it.

Hey — saving $1,500–$2,000 a month is a strong foundation to build on.  Great start. While you're still in the saving phase, now is the perfect time to educate yourself and start laying the groundwork. I recommend checking out two books by J Scott, both published by BiggerPockets: The Book on Flipping Houses and The Book on Estimating Rehab Costs.  They’ll walk you through everything from finding deals to budgeting rehab work.

In the meantime, focus on getting familiar with your local market. Start driving around different neighborhoods in Houston and take note of properties that look distressed. Track what homes are selling for before and after renovation to get a feel for profit potential. You should also be networking as much as possible. Go to real estate meetups, introduce yourself to agents, wholesalers, and other investors. Tell them your goals and learn from their experiences. Even though you’re not buying just yet, these steps will help you hit the ground running once you’ve saved enough.

Let me know if this was helpful.

Hi Devin - In my opinion, you first need to pay off your personal debt ASAP.  Think of it this way, if you use $120K to pay off debt, you will remove nearly ~$3,500 of monthly personal debt payments, which in turn is $3,500 extra in your pocket every month.  Further, I'm assuming some of these personal debts (credit cards) can have interest rates in the high 20s%.  Most likely you will not find a real estate deal that will generate $3,500 of cash flow + Equity, nor a 20% return as an alternative.  

Thus, 

Step 1: Pay off personal debt.  Use the debt snowball method. Start with the Robinhood account, then once that margin account is paid off, use the $840 to pay off the car loan.  After car loan is paid off, you'll have $1,276 ($840+$436) extra to pay off your Citi Credit Card, then etc etc. Keep doing this until your debt free.

Step 2: Get personal finances in check.  Do not spend more than you make every month, so you don't get drown in personal debt going forward.  You need to have a mindset that you are completely broke and have no extra money to purchase anything... bc in essence you are broke.

Step 3: Start investing with the money you save, after personal debt is paid off.

Side note:  Think of debt as a tool to help you purchase cash-flow generating assets.  Otherwise, if you are using debt to purchase materialistic items, you'll dig yourself a whole which is difficult/impossible to get out of.

Hey Nick - welcome to the community! 

A few are a few tips

Get super clear on your seller avatar. Start by focusing on owners who own their properties free and clear or with lots of equity, especially tired landlords or mom-and-pop operators. They’re more likely to entertain seller financing or creative terms.

Start building relationships with commercial brokers and wholesalers. Even if you plan to talk directly with sellers, brokers and wholesalers often come across leads that don’t fit their standard buyers, especially if financing is tricky.

Learn how to analyze deals. Even creatively financed deals need to cash flow. Study how to analyze a potential deal by looking at income and expenses. This will give you confidence when talking to sellers and potential partners.

Consider partnering on your first deal. Find someone with experience or capital who needs hustle and deal flow. If you’re the one generating leads and solving seller problems, you can earn your piece of the deal through sweat equity.

Let me know if this was helpful.

Hey Nereyda, welcome to the forums.

Here’s what I’d recommend as a starting point:

Keep educating yourself – your fear comes from the unknown. The more you learn, the more confident you’ll feel. Listen to the BiggerPockets podcast, read books, and spend time here in the forums. Education helps you understand the risk/reward, so you can take calculated risks when the time comes to buy your first property.

Start saving for your first down payment – Even if it’s just a little at a time, consistency matters. Having a strong financial position gives you more flexibility and helps reduce risk on your first deal.

You can find local real estate meetups posted here on BiggerPockets or just Google real estate investor meetup in your area. Some are free, others charge a small fee (~$25) to cover food or venue space.  You don't need a membership to find meetups, although some do.

There’s a ton of free or low-cost education out there. The key is to learn, take notes, ask questions, and taking action what you’re learning.

let me know if this help!