How Do I Get Started?!

[Mike Ventura]

Hey BP, I hope you all are having a fantastic start to 2016 and have made strides to your REI goals! I'm looking to start investing in 2016 but am scratching my head on how to get started. I have two options that I'd like feedback on: 1. I am currently living in Huntington NY on Long Island and renting an apartment for $700 per month. Now that I've been introduced to REI I am considering buying a three bedroom home and financing the purchase with a 203k loan. Ideally I'd like to find a turn key home between $200,000 - $250,000 that needs some improvements. Nothing drastic just paint, flooring, etc. My goal is to rent the other two bedrooms to pay the expenses completely or minimize the amount of rent I would be paying. I'm confident that if I find a house in the price range above, I'll be able to successfully eliminate or decrease the amount of rent I pay while building equity in the home. My reservation is that I don't know how long I will be on Long Island. 2. I am originally from New Jersey, Blairstown to be specific. When I originally started reading up on real estate I anticipated purchasing a two unit multi family home close to Blairstown and renting the units to produce cash flow. I've targeted Phillipsburg - not the best area but there are nice areas and the town is finishing a brand new high school. I've been able to find houses in the $90,000 - $110,000 range and found that units are renting anywhere from $700 - $850. With a 20% down payment, I'd be able to pay the mortgage with one units rent and cash flow the other. My reservation is that I wouldn't have easy access to the home should there be an issue with the property. So that's the pickle I'm in. I wish I had very specific numbers to work with but don't at the moment. I welcome all feedback!! -Mike Ventura

[Jason Carter]

Hi Mike-

A couple things to consider...

My first purchase was a two bedroom townhouse and I thought I could rent the other room and it was definitely harder than I thought. Make sure you can afford the place without roommates or look at less expensive properties. Have you considered a multi family in Long Island? That would be easier to rent now and when you move out later.

Also you may want to check into property management companies in Blairstown. If you can find a good one that might help alleviate some of your worry around the distance.

Good luck!

-Jason