Hello i'm a aspiring full time investor. I have 70k to invest. Where should i start?

Question

Im interested in apt buildings and am curious about some of the not so obvious issues with this. any feedback or ideas is greatly appreciated

Julien Jeannot · Answer

@Joshua Posada

I'd start with a vision first. What are you looking to accomplish with apartment buildings?

What does that look like?- Time horizon

- Cash flow vs Equity vs hybrid

- Passive or involved?

- Value add or turn key?

- Risk tolerance?

- Local or out of state?

- Solo or JV?

Steven Luttman · Answer

Buy a 3-4 unit property that you will occupy using a low down payment (3.5%-5%) loan option. You can read all the books and listen to all the podcasts, but nothing will expedite your learning curve faster than living in your investment. Gain experience, then duplicate your success in another property.

Best of luck, you can do it. -Steve

Stephanie Walker · Answer

Hi Joshua! House hacking is the way most investors get started. There are a number of ways to do it: Live in the house for 1-2 years then rent it out, purchase a multifamily: live in one unit and rent out the others, or purchase a single family and rent by the room. Traditional investing is possible, depending on the areas you're looking at and the price of entry. Have you done any research on which areas peak your interest?

Peter Dorinsky · Answer

Hey Joshua, I would also suggest house-hacking for your first deal if possible. It's a great way to get your foot in the door and help you save for your next investment. It's easiest to start in your local market where you can be hands-on and already have knowledge about the area. BiggerPockets has great resources for educating yourself on different markets and investment strategies. Once you've settled on a market and investment strategy I'd recommend making connections with local agents, lenders, pm's, and contractors. BP is also a great place to connect with local professionals and build your team! Good luck as you start out!

Steve Kenney · Answer

Hey Joshua,

As others have suggested a great way to begin real estate investing is to purchase a property between 2-4 units and owner occupy one unit for at least a year. If you occupy it the loan terms are much better, only needing to put 3.5% down for an FHA loan. Ideally if you could find a 4 unit in a decent area, that would be preferred. You'll be living in one of the units and collecting rent from the other three, so it would be a great way to learn the business, get some cash coming in and cover your expenses.

As far as getting started, don't overcomplicate it. I started by listening to podcasts in the car (BiggerPockets podcast and real estate rookie are great) to get some baseline knowledge. I then searched for real estate meetups in my area and found a mentor from that. I'd highly recommend finding a real estate agent in your area that is investor-focused and they can help you run numbers on deals and provide some mentorship.

Good luck!

Trevor Naumann · Answer

What part of upstate NY are you in? different markets will present different opportunities. If your able to i would househack a 4 plex. If not i would look for a small multi where the prime value add is getting rents to market rates. In my experience you will be able to get a better deal from a mom and pop landlord with under market rents and if you can get in there and improve the rents and leases and make minor improvements assuming interest rates go down in the coming years the value will go up as the monthly payment goes down increasing the value of the property and then i might trade up into a larger building with the equity from the sale. Again that said if your in a market which supports student rentals that could be a good strategy or i just had a client who did a great job with a small lets call it "boutique" Mobile home park which was sitting on the market so it just depends on the opportunities around you.

Devin Peterson · Answer

Hi Joshua,

Welcome to Bigger Pockets! The world of real estate investing is a vast space. Have you given any thought into what types of Asset classes you would be interested in investing in? Theres a bunch of good books and resources available on the BP "Learn" tab to help guide you. Id be more than happy to discuss the world of financing options for you first investment. Let's connect!

Joshua Posada · Answer

That’s great news

Thanks for that.

Any areas I should focus on?

Kiernan LaFaver · Answer

Syracuse NY and the Central NY region in general is a very favorable area for investors, especially first time investors. There are lower priced properties that will still rent at a nice profit market when including mortgage, taxes, other expenses. Great selection of both multi family and single family homes

Hello i'm a aspiring full time investor. I have 70k to invest. Where should i start?

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