Starting Out - Goal is to buy my first property in 2021!

[Radhika Paliwal]

Hi Everyone!

I am just starting out in real estate and want to buy my first investment property this year. I'm looking into out-of-state multifamily unit that'll provide a positive cash flow. I've begun my research but had a couple of questions that I can't find good answers on. Was hoping to gain insight from all of you.

1. Can I use my 401K account to fund my first property? (not a loan but pull that money out and pay the 10% fee associated with it.) What are some advantages to doing so? Has anyone else used this same approach?

2. As an out-of-state investor, is there usually a minimum down payment of 20%? Are there other fees I need to be aware of? I'm mostly curious about this so that I can start looking into markets that I can afford rather than looking all over.

If anyone has other insights and has gone through a similar process, I'd love to connect and learn more.

Thank you!

[Joe Villeneuve]

Never focus on the number of doors as a goal.  Instead, focus on the number of dollars.  If you focus on the number of doors, and you are getting close to your deadline, you will make a bad deal.