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Updated almost 7 years ago on . Most recent reply

Starting My Portfolio
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

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.