2025 1st Quarter 1st REI!!!

[Alex Collins]

Hello, beginner real estate investor here! In 2020 I graduated from Indiana University of Bloomington with a Bachelor's degree in Nursing. Since graduating four years ago, I moved to Downtown Indianapolis and began my nursing career. Currently I view real estate investing (REI) as a method of generating additional income apart from my 9-5. However, my future plans with REI involve transitioning my primary income from nursing to REI. The main property investment strategies which interest me are STR, MTR, house hacking and flipping. The type of properties I'm searching for are single family ranches and multi-family 2-4 units. In view of the fact that I'm a newbie, complete home renovations seem out of my league (for now). In these early stages of learning and developing as an investor, I'm primarily focused on properties that may require the following: paint, flooring, bathroom/kitchen remodel, drywall, light fixtures, exterior landscaping, siding, or new HVAC. In regards to capital I have options: FHA, private lender, tradiational, and I'm moderately liquid. As for location I'd like to purchase property I'm undecided; wherever isn't going to give me a headache :).. I do however want to purchase something within Indianapolis or the surrounding areas: Greenwood, Avon, Carmel, Plainfield etc.

[Stuart Udis]

I can't comment on the Indianapolis market but I am always weary of individuals jumping into flipping houses as their first exposure to real estate. There are so many contingent items that can arise. If you are someone who qualifies for an FHA loan, its an incredible tool to take advantage of and you should start there. As far as general strategy, start with long term rentals.

Along those same lines, I recommend shifting your mindset from generating additional income to investment diversification. For some reason real estate is viewed as an income supplement and eventually income replacement by most who become interested in investing. It's not the reality for most and if more beginner investors had the correct mindset they would make better and more informed investment decisions. It's normally the desire for immediate income that steers most investors towards bad investments because they are hyper focused on cash flow which is often portrayed differently in spreadsheets than in real life, and should be a consideration but not deciding factor. It's normally the investors who view real estate as means to generate additional income that fall for the trap.