Developing a strategy...Need advice from seasoned investors!

[Trina Shelton]

My boyfriend and I want to become real estate investors. I worked in Real Estate/Property Management (was the office manager/accounting supervisor for one of the largest companies in our area) for 8 years, had a license but decided to let it go because I left the business. Left there and worked in government public housing for 3 years.  I've always had a love for real estate, but the flame has recently been reignited after being called back to help out in the real estate office. We live in a small town in Alabama that is fueled by a neighboring military base. Many new constructions are going up over the city, but there are still many older homes and town homes to purchase. 

My boyfriend and I both have great jobs. He has no debt. I am in the process of paying mine down and we are both saving money. We live way below our income so that we can invest in our future. We want to start investing in real estate next year. 

I guess my questions are:

How much cash reserves should we have on deck before we purchase our first property?

Do we flip? I've always been interested in this but I've seen many people fail.

Lower end properties are attractive, but after working in public housing, I am scared and don't know if I can do it. Is it still worth a go?

I am in the process of reading my first real estate investment book. I plan to eventually sit down and talk with my old boss, she is a very successful investor and business owner, to get ideas and tips. I am trying to glean as much info as possible to develop a good solid strategy.

Thanks for reading!

[David Pere]

first steps: learn, network, (build capital), take action!

As for cash reserves, that can vary based on the age of the property, condition, location, etc...but I've always hear $10,000 per property (scales down per unit if you buy multiple) is a decent starting assumption.

Flipping is active income (not bad for building wealth in the short term), buy/hold is more passive, and cash flow is great (playing the long game)...military installations often come with a decent amount of buy/hold opportunities due to the housing allowance service members receive.

lower end is okay...if the neighborhood is. Lower end because it needs renovations can be great...lower end because of crime/bad neighborhoods...be wary, ask your property manager for their thoughts on rougher neighborhoods.

hope this helps!