Real Estate Agent · Member since 2020 · 6 posts · 7 votes
Which type of investment property would you suggest for a newbie investor to start off with? ( ie- single family home, 1-4 unit apt bldg, storage unit,etc)...Hoping that there is a strategy I could use to close a deal with no money down on my end, and still make money to reinvest in future business... I am also (newly) licensed, so does that make a difference in the way I invest?! (Is- wholesaling, fix n flips,etc)
I am a recent grad and new to the BP community. Can you provide some advice or tips & tricks for new investors? I live in Chicago as well. I want to house-hack by living in one of the units (FHA loan), but I am having difficulties finding good deals. Also, do you recommend new investors obtain their real estate license?
If you haven't read Scott Trench's book Set for Life, it's a good one. I definitely think that if you are trying to do the no/low money down path, you should look into house hacking. You can take advantage of some of the best loans and opportunities as an owner occupant. Look into HUD foreclosures and your local down payment assistance programs and grants. If you can utilize some of these strategies to house hack a small multifamily, that would be awesome! Even you just buy a cheap SFH that you can turn into a rental, that's a great place to start too.
- Even if you find a deal where you can put no money down and still cash flow, please make sure you have money in reserves. At least 6 months worth of mortgage payment plus another $5-$10K just in case there are urgent repairs needed or you have to evict someone soon after you close on your property.
- Mind the time-value of money: A no-money-down deal that will also cash flow takes more work to find and close. As you know, the faster you own a cash-flowing property, the faster you build wealth and earn income. If it takes you 6 months to find a deal, that is 6 months of potential income and principal paydown you aren't getting compared to how fast you may find a deal with traditional financing.
I am a recent grad and new to the BP community. Can you provide some advice or tips & tricks for new investors? I live in Chicago as well. I want to house-hack by living in one of the units (FHA loan), but I am having difficulties finding good deals. Also, do you recommend new investors obtain their real estate license?
@Alleia James You don't get many advantages of having your license besides being able to access the mls and negotiate your own deals without having to pay a buyer's agent a commission.