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Updated over 5 years ago on . Most recent reply
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Need Help Getting Into Real Estate Investing (Sacramento/EG)
Hi everyone,
I am new to real estate investing and need some advice from experienced property owners. Iv spent hours learning about real estate investing but I am still very hesitant to pull the trigger. I am 26 years old from Sacramento that makes a 75k salary. I currently have 70k in a high yield savings account and want to use that to buy my first single family rental property in the Sacramento/Elk Grove area. I plan to stay at my full time job to fund my real estate hobby.
Im looking to purchase a 270k-300k 3br/2bath single family home with 20% down that is well kept but outdates. I will put 5k-10k to modernize the property w my pops who is an unlicensed contractor and rent it out for $1800.
My question one to you is...
1. Is my plan feasible?
2. Is it worth buying my first property that does not cash flow but will learn a lot from the experience? Or stay on the sidelines until a come across a cash flowing deal?
Please give me some feedback and let me know what you guys think.
Thanks!
Long
Most Popular Reply
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- Flipper/Rehabber
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Originally posted by @Long Nguyen:
@Bud Gaffney I would like to start small with a single family to get my feet wet then move over to a duplex, triplex, and 4plex. Any tips on this approach?
Look into BRRRR
THe trick here is that the cheaper you buy it, the more money you will make and have available for the "repeat" part if this strategy.
See the problem with buy and hold investors is that they think Lead Generation does not apply to them.
These investors for some stupid reason think that it is OK to buy MLS properties and they think Ohh my number calculations are very different from flipping or wholesaling.
THen they buy houses the "conventional" way and after the 3rd house their debt to income ration is so high they are stuck. They can't buy anymore and if you can't buy you don't get paid.
ALL investors should look into lead generation the right way. EVERYONE!!
Find an off-market property and buy it around 20 -40% ARV.
Fix it up modestly, and THEN refinance.
In between here and there, wholesale a few, and flip one or 2. This is the BEST strategy to get your investing business growing and expanding always at all times.
May the Jerryll be with you man. Always!
- Jerryll Noorden
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