New Guy Needs Advice

[Derek L Mooy]

I’ve got about 20k to invest in buy-and-hold rental properties. There are two ideal routes I see at this point to do this.

1. I found a local landlord that is beginning to sell out and has a home he's willing to give me a great deal on as a way of mentoring me into the business. I'm not interested in most of what he has for sale as they're ran down far past the point I'm willing to rehab. Should I pay cash for this one unit and use that equity to purchase the next home somewhat following the BRRR method? Or...

2. Use the 20k for down payments on a couple more expensive properties that will provide more cash flow immediately. Then use those properties as a springboard for other properties.

I’m currently 36 years old and have an end game of having enough cash flowing properties to be able to quit the day job in my 40’s in order to focus on family and helping others.

[Seth Greenfield]

@Derek L Mooy it sounds like option 1 was paying 20k cash for a unit which makes me think there are some cheap options to be had!20k could get you a couple 40k properties. I try to work it where either the seller pays all or most of closing which helps my cash go farther.