How would you use 300k to start investing in real estate?

[Sabrina Dagostino]

Hi everyone!

I am a 24-year-old business owner in FL and I've been looking to get started with investing for two years now. I have around 300k saved for real estate investment purposes. I've learned SO much from reading BP forums, attending boot camps and also personal research, but am still feeling a bit stuck on where to start. For a while, my plan was STRs in the South Florida market, but I've recently taken a huge interest in section 8 investing and have been learning a lot about it. I'm thinking of starting with conventional loans to secure 20% down payments and then eventually shifting to hard money lending. To the seasoned investors out there, what would your first move be if you were in my shoes? Thoughts on starting out with section 8? Super thankful for any and all advice. Thank you (:

[Jay Hinrichs]

I am going to be the voice of caution on section 8.. especially low value low priced section 8.. those are in the roughest neighborhoods in America.. there is very little change of appreciation unless rents rocket up and section 8 is pretty stable. also your tenant base is very tough on the homes so your going to have far more annual maintenance on these than buying a much better class of property. Every city has section 8. some of my clients specialize in it in Baltimore and those rates are some of the highest in the US and rent to price ratio is very high.. If your going to go into sectin 8 investing it has to be for the long term and you have to continue to grow it.  Just owning few is not going to do much for you.. your better off buying in much better locations of the city or in areas that you have a very good idea your going to see appreciation..  U want to buy where you have two exits ONE to a landlord and TWO to a home owner.. if your buying 50k section 8s there are NO homeowners and if you have a bad experience which many do you have zero exit your will be selling to guys like Bob who are pro's are will low ball you or wholesalers..  CAUTION