Been on the sidelines too long, ready to get started and could use some advice.

[Ryan Cummings]

Hey everyone,

I've been consuming BP content (podcast, audio books, the forum, etc.) for the better part of 5 or 6 years. Between job transitions, grad school, money tied up in other business ventures, and the rising interest rates, my real estate investing pursuits were pushed to the side. I'm finally in a place where I am ready to get the ball rolling. 

I'm in Nashville but looking at more price-accessible markets, like Memphis. We have a good amount of equity in our home and currently have a $140k HELOC on it with a local bank. I'm wanting to get started by putting our HELOC to work - either doing a BRRRR or a flip. For my first property, is that too much of a headache? I'd love to have a mentor who could partner with me and show me the ropes. Last thing I'd want to do is rush into a property, miss red flags, and end up getting in a bad situation.

Is a rehab in a C class neighborhood (which is what it would likely be) a bad idea for my first property? Most of the stuff I'm looking at are SFH in the $75-100k range with $10-$30k worth of rehab. I do have a contact or two with some investor/agents in Memphis and get sent properties and can refer contractors and such. But I'd love to hear what others would do in my situation.

[Mike Mosee]

Hi Ryan

Find a reliable property manager for accurate rent rates to determine how the numbers will work. Think you're a little shy on initial cost to find a SFR in C grade area, You're closer to $100k + rehab of $20-30K for a 3/2. We've been investing in Memphis for 12+ years in primarily this asset class with good results BECAUSE we have a great property management team. Can refer if desired.

Like Ko said the first one is the most difficult & then it gets easier to move on.

Best,

Mike