On the verge of my first property!

[James Hamilton]

Hello everyone, I could use some advice. I looked at a FSBO single-family house in St Louis that is within my price range and will cash flow right off the bat. In a good area, good schools, it all checks out. I also have another property that i'm interested in, but it's through a very reputable turnkey company and it's out-of-state. Very similar financials, with purchase price and cash flow.

I am torn. Part of me wants to start locally, learn how to be a landlord, earn my place in this real estate investing world. But that comes with more uncertainty. The turnkey property is out-of-state, so it would be almost 100% passive, but more of a sure thing in my opinion.  

Considering I have almost NO experience or skills other than educating myself, do you have any advice on what to do first? I only have enough capital to purchase one property at this point. 

Also, the seller is going FSBO. He would have to raise his price if I wanted to bring in my real estate agent. Is pursuing a FSBO without a realtor seriously risky? Would it be worth a couple thousand to get the realtor involved in the process?

Thanks all, hope you're having a great week!

[Tom O.]

Quote from @Nathan Gesner:

Quote from @James Hamilton:

There's no right answer. I think it's a good experience to try managing on your own, but it also comes with increased risk of making a mistake during the purchase process or as a Landlord. If you have the ability to self-educate and are pretty good at handling difficult situations, then I think you should give it a try.

I do not recommend buying without a REALTOR. They can help cross-check the contract. They understand market prices and can ensure you're not getting taken for a ride. They have contacts for inspections. They are objective and not emotionally/financially involved.

I'm going to respectfully disagree. You can hire an attorney for a few hundred bucks to get you to the closing. A RE agent is going to raise the price and take a commission for not bringing much to the table. You can ask them to work for a flat fee. I did that with a FSBO guy. His lawyer wanted $3,500 to draft the sales contract. My realtor would do it for $1500 which we split 50/50.

I would not use a realtor unless you can get them to agree to working on a flat fee. But if you need a lawyer for the closing then you don't really need a realtor as a buyer.