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Updated over 7 years ago on . Most recent reply

User Stats

2
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1
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Keith Bowman
  • Webster Grvs, MO
1
Votes |
2
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Partnership or Solo? Question regarding my first deal.(St. Louis)

Keith Bowman
  • Webster Grvs, MO
Posted

My goal is to save up $10k to invest with two partners.  One with access to experience, one with access to money, and me with time to work, analyze, and learn.  Would I be better off: 

1. Taking my $10k to buy a duplex to house hack via FHA loan (and if so is 10k enough?)

2. Using a partnership to buy a better property (higher ROI?)

3. Using a partnership to flip a house to build capital for my own rentals.

My goal is to own multifamily properties (2-4 doors for now) and I want to get started sooner rather than later.  

I'm 23 year old recent college graduate and so far my only experience comes from podcasts, books, and conversations. This is my first post so any advice would be extremely valuable!  Thanks! 

Most Popular Reply

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30
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14
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Drew Kimminau
  • Rental Property Investor
  • Washington, MO
14
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30
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Drew Kimminau
  • Rental Property Investor
  • Washington, MO
Replied

@Keith Bowman, Ian is right it really depends on your needs. If you need a place to live, you could easily afford a duplex in the south city area. If the duplex has 2 bedrooms on each side you could rent out one side and also rent out the extra room to a friend on your side. This would probably deplete your cash pool but you would be able to live practically free and be able to save a ton of money that would have been going to rent. "A Penny Saved is a Penny Earned". If you want to learn about this the biggerpockets book "Set for Life" is awesome for guys coming right out of college. Have you read that? 

However, if you are able to live rent free already maybe living in your parents basement then partnering up could be a better choice. If you find the right partner you could buy a larger multi-family or a few single family homes. Experience will come with every deal you do so this could be a good route too.

I only have experience with buy and hold rentals so I dont know much about flips. If you have any questions about St. Louis or FHA loans just connect with me and PM me. I have only done 2 deals so I'm pretty new too. I can tell you all about the mistakes I've made already so you can avoid them lol

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