First Time Investor - $200K to Invest

[Jack Norris]

Hi guys,

I'm Jack. I'm looking to buy my first buy-and-hold rental property jointly with my sister in the coming months. We're newcomers to real estate so we've been in the learning phase for the last few months, but hoping to narrow in on something soon.

I'd love to get some of your guys' input given our criteria and where we're at as of today.
I know at the end of the day it ultimately comes down to what our financial goals, risk tolerance, current and future plans, involvement, etc. look like but I'm totally just curious what any of you more seasoned investors think, given the below.

Here's what we're thinking:
- $200K total to invest (50/50 between the two of us)
- Use this money for several down payments over next couple years (maybe incorporate some BRRRR down the line once we've become more comfortable)
- First deal: a turnkey SFH (buy-and-hold) in a decent/higher cash-flow market ($150K-$220K home range; thinking Phoenix, Dallas, Midwest)
- Thinking of utilizing a turnkey company (like Norada or RealWealth) for this first deal since they have the systems/contacts in place and we are brand new to this


Thoughts? Would you use the money completely differently? Different strategy?

I know this is all kind of broad and I'm not really asking anything in specific - just curious if anyone thinks I'm on a solid track here or if I should re-think this completely.


Thanks guys,
Jack

[Ryan Swan]

$200k down payment is a healthy budget for Phoenix multi family. Assuming 25% down it would get you around $800k purchase price (a little less when you factor in closing costs and 6 months of reserves). Or you can do a higher DP on a lower priced fourplex to supercharge the cashflow.