How did you decide on type of properties to focus on initially?

Question

Red Peterson · Answer

@Jay DeCima. Thank you so much for taking the time to comment. I agree, I seem to focus on "how to get cash/wealthy QUICKLY". I would try to re-focus, only to find myself back in the same thoughts--this is quick, that will do it fast..

For now, as I do not consider it will always be this way, my challenge is we arent handy. So, Im intimidated with fixer uppers. But I agree with you, that fixing up can compete, if done right. I do buy and sell (not real estate) on a small basis more of a hobby and thats exactly what I do. I buy subpar or not clean items; clean them up and resell at higher value. Works all the time. So,with no skills in "seeing" what is a good fixer upper, I tend to gravitate to not necessarily shiny, but pretty much all done up properties. Well, the downside on those, is they are also expensive. So I get stuck because I always think about what I learned here that you make your money when you buy, that if I overpay, I'll have a hard time making money. I also dont know how to determine if the property is over priced.

I want to start with something I can handle, but I somehow focus on the price tag. Then Im not sure how much would rehab cost me in addition to the property. Ha! Just writing this makes me confused---do I want fixer upper with cheap price tag or do I want ready to move in place?

Like between a 2-1 SFR in C neighborhood for $45K but needs tlc or ready to move in 2-1 condo for $95K-also in C neighborhood maybe B. I know thats too generic just wanted to share my dilemma, for lack of better word.

Anyways, thank you again for your insight. I love it when I get advice from a pro who has done it and was able to achieve their goals, if not more.😊

Jay DeCima · Answer

Red

I have posted this several times for newbies"

A simple wealth plan is the best. I have done it for 40 years and 200+ homes in Northern Ca.

Why is it that very few people ever achieve their financial dreams and what do the few successful ones do differently from the ma­jority who fail? Could it be they plan to fail? I don’t think so. More likely they to plan. Many waste much of their most valuable resource, their time, trying to figure out ways to make money quick and easy without much effort. These people are only fooling them­selves. Nothing worthwhile is accomplished without some hard work.

When you begin your journey to financial independence, first you must determine where you want to go. Then decide how you will get there. What are the risks and what are the sacrifices? Are they worth the end result? Don’t complicate your plan. No one likes to follow a plan that’s overloaded with restric­tions and contingencies. Keep it simple.

I decided to buy older houses and small apartments that needed fix-up. My reasoning was, I can do much of the work myself. Plus, I can buy them for much less cash down because there are fewer serious buyers for rundown distress type properties. I also thought, and it proved to be correct, that once fixed and cleaned up with bright new paint, older rental houses would command about the same rents as equivalent sized newer houses.

Good luck.

Fixer Jay DeCima

Red Peterson · Answer

@Mike Dymski-thank you!👍🏻

Mike Dymski · Answer

Market opportunity (flip, rental, SFR, MF) and pivoting with it drive many investors paths (along with familiarity).

IMO, purchasing an owner occupied property, rehabbing and either selling, or refinancing and renting it, is the best catalyst for getting started.  Financing with that path is low cost and easy, you get familiar with property maintenance/rehab and, most importantly, you recycle cash for the next property.