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Updated almost 7 years ago on . Most recent reply

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4
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Celeste Fikiri
  • Berkeley, CA
2
Votes |
4
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Starting My Portfolio

Celeste Fikiri
  • Berkeley, CA
Posted

Hello Biggerpockets community,

I am a delighted to have discovered Biggerpockets and I am hooked on the podcast and all of the resources. I need some real time advice on how to get started in real estate. My goal is to generate a full time income investing in multi-unit rentals and flipping over the long term.....I am not looking to get rich quick. This is a business I plan on passing down to my daughter. I have inherited a nice amount of money, which has allowed me to go down to teaching part-time (which I plan on doing forever, because I love teaching), but I do not want to continue to use my inheritance to live on. 

Here is where I am looking for some advice. I am not sure which path to take to get started. 

My goal is to have a full time income from my properties, with my teaching income as fun money.

Path 1: I have enough money to buy a duplex or triplex, (in an up and coming community in the SF Bay area) with cash and still have a cushion in the bank. The income from the multi-family would be enough to save, maintain, and modestly supplement my income. From this place I would slowly build my real estate business by flipping and buying and holding through the various means of financing available.   Or should I take path #2?

Path 2: Put my money in a few different local banks, use my savings to modestly supplement my income, apply for a loan for my first property which could be a multifamily unit that I sit on and build from there using the BRRRR method.

As you can see my dilemma is.......use my money to start my first property or use someone else money. I think that there are advantages to both plans, but I am just not sure which one would be the most beneficial. 

I would love any advice you have to give!

Thanks,

Celeste   

Most Popular Reply

User Stats

17
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26
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Aaron Moore
  • Rental Property Investor
  • Toronto, Ontario
26
Votes |
17
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Aaron Moore
  • Rental Property Investor
  • Toronto, Ontario
Replied

The BRRRR strategy is great to stretch your money further. Can you find the deals that will enable you to pull out a big chunk of money after renos? The challenge is usually finding the deals.

Also get clarity from a bank on how much they'll lend to you on rentals. I'm not clear if you're debating to buy a rental with all your own cash or getting a mortgage from a bank... but YES try to get a low rate from a bank and use the bank's money.

For many people it's a good idea to start with ONE property. There's a learning curve. But the sooner your start the the more experienced you'll be. Don't wait for the perfect deal. Buy a good one and get started.

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