Newbie in Colorado Springs

[Tekota Ruby]

Looking to get my feet wet in real estate investing, any advice on what methods of investing works best here, or any advice at all would be great. I've researched RTOS(lease option), and the BRRRR method, just trying to figure out the best method in this market.

[JD Gunter]

Welcome to Bigger Pockets! The best option for you will be dependent on your skills, experience, and resources. Many of the people who wholesale or flip are simply doing so to raise capital for longer-term strategies. However, some people genuinely like flipping houses, do much of the work themselves, and take pride in the service they offer. I have clients in Colorado Springs that fit this description and I'm not going to say they aren't doing what's "best," they're simply doing what they must to establish themselves.

I also have clients focused on buying long-term buy and hold investments who are able to get the financing and down payment necessary to consistently grow their portfolio. If you have the capital to grow a portfolio, buy and hold investing is tough to beat. Strategies like RTOs can help boost the returns, but long-term investing has a lot of benefits financially and in regard to quality of life. If you have the resources for it, long term buy and hold is the best strategy here and anywhere.

[James Carlson]

@Tekota Ruby

The way I think about things is this ... RE investing isn't about killing it on the one deal. It's about amassing numerous properties that help you gain more financial freedom. Because of that, I think the best first purchase is a safe purchase that doesn't overwhelm you and keeps you motivated for the next purchase and the next and the next one. 

I know, I know ... everyone has heard the incredible stories on the podcasts of creative investing. And maybe I'm too conservative about this, but I think the best first purchase is a simple primary residence. That's how we got started in Denver (bought a simple 1br condo), and it's how a lot of our clients do it in either Denver or Colorado Springs.

I mean, you have to live somewhere so why not own that place. If you can afford it, make it a duplex or a triplex, and get some practice with being a landlord, but don't get discouraged if it's simply a SFH. You can rent out the rooms long-term or do a short-term rental on Airbnb. Even if you just live there by yourself, it's great practice with reading the market, with maintenance, etc.. Hopefully you build some equity and in a year or two, you can buy a full-on investment or buy another primary residence (taking advantage of the lower down payment) and make the first home a rental.

That's my take anyway. Good luck!

[Tekota Ruby]

@JD Gunter thanks for the response, I'm looking for do both long term investing as well as the quicker flips to increase capital. Thanks for the response!

[Tekota Ruby]

@James Carlson that's what I was thinking of doing, just using an FHA loan and invest in an Sfh for a year or two, while residing in it, just so I can get a feel of the property management of my own house, thanks for responding!!

[Mariana Lazo]

Make sure you start learning the fundamentals of real estate. Do not marry to a particular strategy for now. Be open minded.