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.

[Jonathan Greene]

Congratulations on getting started. Two main responses for you:

1. Nursing is one of the best professions in the world NOT to have to transition out of. You can work limited hours in so many different capacities that you want to keep that for longer than you think to keep supplementing more options. You can also use your relationships and where you work to launch MTR properties nearby. I would do this after I do the one below.

2. House hack for sure. Get as many units as you can with an FHA loan and don't buy a value add. If you have open units, use your colleagues because they will be great tenants. Consider after the first year, converting 1 of the units to MTR.

[Travis Timmons]

Agree with the above. The "I want to use real estate to replace my income and quit my W2" idea is really, really hard. You either have to have paid off properties, own properties in high appreciation locations that you have owned for 10-ish years, or several short term rentals that you self manage (which is a bit of a job in and of itself). 

Play the long game and focus on rent and home price appreciation. If you insist on value add, live in flips may be a good place to start. It mitigates the risk because you can go slow, you are living in the property, and you get the tailwind of 2+ years of market appreciation while waiting to sell tax free on the gains. It really sucks to bleed cash and live in a job site for 2 years, though. 

I'm also an IU grad and hit financial independence last year (after 18 years of investing and saving). I have nothing to sell and would be happy to help if you think that I can be a resource. 

[Wale Lawal]

@Alex Collins

As mentioned by Jonathan Greene.

If you're transitioning from nursing to full-time real estate investing, focus on house-hacking in high-demand areas like downtown Indianapolis, Carmel, or Greenwood, targeting short-term or mid-term rentals. Start small with simple rehab projects like painting or landscaping to boost value without overextending. Use financing options like FHA loans or private lenders and prioritize local properties to streamline management. Build a solid team and evaluate deals carefully using tools like BiggerPockets calculators to ensure strong cash flow and returns.

Good luck!

[Steve K.]

Hey Alex,

Congrats on getting started! There are a lot of different avenues in real estate and it can be overwhelming when you first start out, but my advice is to just get the first deal under your belt. You are going to learn a ton from it and also learn about things you do and don't like. Maybe you are really handy and enjoy putting in the sweat equity. That could lead to future fix and flips or BRRRRs. Maybe you hate doing the handy work but have a knack for analyzing deals and end up getting your real estate license to help other investors. There's just so many options out there but the first step is getting that first deal. 

The steps for getting your first deal are:

1. Identify the market you want to invest in (it sounds like you've already done this)

2. Identify your buy box (how many units, purchase price, etc.)

3. Talk to a few local banks and get preapproved - the best financing will be for properties you choose to occupy, so I'd recommend getting something with at least two units. One to live in and the others to rent out

4. Find an investor friendly realtor in your market that can email you listings that match your buy box. 

5. Start analyzing deals regularly. You have to analyze a bunch, so when the right one does pop up you'll be confident in making an offer. 

6. When you find a deal that interest you setup a showing. If the property is a good fit make an offer. 

Those are the basic steps to get your first deal. What also helped me was going to local meetups to meet other investors. That's how I met the realtor that mentored me and got me my first deal. You have to put yourself out there and get out of your comfort zone. 

If you could visualize a realistic first deal, what would that look like? Write those details down, then start looking for properties that match it. Try not to get too distracted on flipping, STR, MTR, etc. Just stick to one strategy for now.

[Julia Lyrberg]

Hi Alex,

You're off to a great start, and it's awesome that you already have clear goals in mind! House hacking is a great strategy for beginners—it lets you reduce your living expenses while building equity. With an FHA loan, you can finance a 2-4 unit property, live in one unit, and rent out the others to cover your mortgage. It's a great way to learn property management and start generating cash flow.

Focusing on cosmetic fixes like paint, flooring, or light remodeling is a smart approach too—manageable projects that can still add a lot of value. Stick to neighborhoods around Indianapolis or nearby suburbs that have strong rental demand.

[Kerry Noble Jr]

Lets connect

[Gloria N Gear]

Alex, you are in the perfect location and the perfect career.  You even graduated from IU so you have access to some awesome loan programs from IUCreditUnion.

Keep your job and connections to buy a house, then rent out rooms to traveling nurses.  That is a booming business in Indianapolis.  You know that IU Methodist is building their new building with 900 beds.  The neighborhoods around there are prime for your strategy.

Would love to get you connected to some people that are doing this strategy in Indianapolis.