Newbie Investor Question

[Christopher Malone]

Hello everyone,

I am starting my investment journey in the Chicago land area, and I have a question regarding the strategy I should use for my first buy and hold property. I am planning to buy my first 3-4 unit home using a 203k Consultant FHA loan. I want to purchase around 30k or less and put around 70k or more worth of renovation into it, depending on the purchase price. Would this be a better investment strategy vs. purchasing a ready to rent property? I do plan to occupy the property.

Thanks in advance 

[Brie Schmidt]

@Christopher Malone - I think this depends on your time and experience.  I started buy buying a 3 unit and living in 1.  I worked full time, my husband worked full time, and neither of us had done a rehab.  We bought rent ready and it was the best thing we ever did.  Yes, we paid retail, and yes if we would have done it our self we could have gotten it cheaper.  But, it cash flowed immediately, we barely have any repairs or expenses because everything is new and it really let us ease into it.  Now a few years later and a few more units under our belt we have the time and experience to do the rehab and would probably not buy rent ready.  But I would not change how we started