What REI strategy did you start out with?

Question

I’m new to REI and in the sponge stage of just absorbing everything I can in preparation for doing my first deal. I’ve decided that I want to house hack a duplex to start, but I’m curious as to what your first deals were as experienced investors, what you learned from them, and what you might’ve done differently! I’d love to hear from experienced investors and rookies who may only have one or two deals under their belt!!

Joe Funari · Answer

@Blake Ramsey I personally started with the Buy and Hold strategy. But I purposely purchased SFR's that needed rehab work. My mentor suggested I start there. That way if I made any mistakes in the rehab they were inexpensive to repair over time. Whereas a BRRR or flip strategy it could cost you potentially thousands of dollars if you make mistakes. But regardless of exit strategy do 5 transactions in one strategy before moving to the next one. Also, get to know your market your looking to invest. Multifamily here in the Dallas/Ft. Worth area were I work is way over priced. IMO, SFR's cash flow better. Hope this helps.

Tim Johnson · Answer

House hacking a duplex is a great plan. Trouble is, in my market, there are no readily available duplexes to purchase - that make sense price-wise. (This must be a favorite route for lots of folks right?) It might be different where you are.... but don't give up on finding a "value add" SFR as well and move forward from there.

Joe Funari · Answer

As long as I am netting $200 to $300 per month I would pull the trigger on acquiring the property. The write offs and "anticipated" future amortization is what I look for in a rental property. Stick with a 3 bed, 2 bath, 2 car garage SFR too. You can't go wrong with adding as many of these to your portfolio.

Blake Ramsey · Answer

@Joe Funari Thank you so much for your input! You’ve been really helpful!

Blake Ramsey · Answer

@Tim Johnson Yes there aren’t many options here for duplexes right now. A value-add SFR something I’ve been keeping an eye out for. I’m in college right now so I’m in no rush to complete a deal, I am just keeping myself open to the options that are in my market and learning different state goes that I can get started with. I really appreciate your insight!!

Joe S. · Answer

A person’s investing model has a way of evolving over time. The old saying you don’t know what you don’t know stands true here. When I first started my goal was simply to buy a property or two for retirement. Boy has that sure changed.

Blake Ramsey · Answer

@Joe Funari Thank you so much for your input! You’ve been really helpful!

Blake Ramsey · Answer

@Joe Funari Thanks for the reply, I really appreciate it! When evaluating a market, what metrics do you pay attention too the most? I know for a lot it’s cash flow, but I’ve also heard that cash flow isn’t a good indicator for whether you should invest in a property.

What REI strategy did you start out with?

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