Newbie - Best Strategy?

[Detrick Hannah]

I'm fully aware that selecting the best strategy in investing is totatally dependent upon each individuals circumstances. But some advice from you guys would really help develop my plan of attack. I'm also sure it would help bring some things to my attention that I would not have thought of initially. I'm looking to build a portfolio of rental properties. I've been looking to start on the lower end of things as I have found that many cities in my area offer duplexes and multi-family units at very reasonable prices. Problem is, they require a lot of TLC. I was thinking purchasing one of these units, rehab, and then use the rental income to purchase additional properties down the road. I saw this a s one mode of attack. Then a friend pulled my coat tail to tax liens and deeds as an alternative way to not only gain capital for rehab and reinvestment but to also potentially gain new units.....  What do you guys think?

[George Maka]

@Detrick Hannah If your goal is to build cash flow, as opposed to cash, then rentals are a great way to achieve that goal. I'm not sure how much you have under your belt as far as investing goes, but I like to recommend all people understand the basics. Learn what a deal really is, learn how to calculate common ratios, understanding your market rent, common rental expenses and a common overlooked area, understanding the rehab numbers and what it will really cost to make it rent ready. 

I'm a huge fan of encouraging people to jump head-first in and learn through experience, but just make sure you can at least paddle before jumping in. You'll find a wealth of information through the Bigger Pocket blogs, forums, Youtube videos, and the many podcast that are available. Real estate investing can get overwhelming, but just stay consistent, keep taking massive action and be sure to learn something new everyday.

Best of luck,

George