Should I do a rehab or start in rentals?

[Nick Albin]

Hi guys. I am new to the forum and getting ready to start and give REI a go. I have been reading and researching since I was about 20. Out of school now . A friend of mine who is one of the lucky millionaires who made his money in REI takes me out from time to time and shows me houses he bought, how he bought them what he sold them for you get the idea. I have read and listened to a few course and books as well.

Anyway back to the original question. My friend says that you should start doing light rehabs at first to fluff your pockets before you do any rentals because of costs that may come up in a rental that you have to fix. I respect his opinion but at the same time I was curious as to if this is a universally accepted method, as I have met a few investors who started in rentals.

I have seen a few good light rehab properties that just needed some light

So what do you guys think should I do a light rehab first or should I get into rentals?

The main reason I ask is because I do have some money saved up and there is a area that is relatively inexpensive but its right in the middle of a lot of things. The rentals in the area always do well and I was going to invest in a great deal because of a fellow investor is moving out of town and I was just wondering if it would be smart to jump into the rental market off the bat.

Thanks in advance!