I'm new but I know much less than the beginner's guide assumes...

[Jared G.]

Hey everyone, and thanks in advance for your help.

I am absolutely brand new to real estate, living in the DC area. I do have a lot of "roundabout" knowledge of real estate because I've listened and read many hundreds of hours' worth of financial independence podcasts and books. That's what got me into it.

I've read the beginner's guide a few times but still feel as though I know much less than it assumes. Which is fine, I am eager to read and learn more, but I feel like I don't even know what I don't know.

For example, I've managed to figure out that a good beginner's path would be to buy a multiplex and live in it for a year while renting out the other units. That makes sense. But the guide talks about knowing your criteria before seeking to buy. It also says it can't tell you what your criteria are, because they're unique to each person. That makes sense, too.

My issue is that I have no idea what would constitute "good" criteria at all. I don't even know how one would typically conduct a search for a place. I know how much money I have, but not how much would be "right" to spend on a first property. How do you know what qualifies as a "good" neighborhood, a "good" property, a good price for that property, and other "good" values? Other than "as low as possible" or "as high as possible." I want to get my criteria right, my neighborhoods right, my timing right, etc. But I don't know what kinds of questions to ask here because I can't wrap my mind around what these things are.

I'm finding it hard to research further because of this. The guide makes it seem like these terms are things I should already know. 

Can anyone recommend anything further that isn't just for beginners but is for particularly LOST beginners? Are there any "for dummies" style guides to even the most basic of guides? Thanks!

[John Warren]

@Jared G. I would connect with local investors at a meetup or REIA and start getting local advice. It sounds like you have taken the time to do some reading, and now some on the ground experience is in order. I would also connect with a local realtor and start looking at deals with them. Make sure your realtor is an investor and can help you run an analysis of the property.

You really want to focus in the early stages on the cash on cash return. COC helps you evaluate how your property is performing versus your 401k. It helps you decide if the risk to your capital is worth pulling your money out of a CD, etc.