Advice from the bigger pockets community for a novice investor

[Steven Vanderheide]

Hello community, I wanted reach out to get some advice.

Although I've studied RE investing for the past 10 years Ive never actually purchased anything. I guess you could say I have a case of analysis paralysis but maybe its more commitment issues. I do however believe we'll see more inflation over the next few years than we've seen before and a lot of that currency will flow into assets like property. So I believe 2021 is the year I take the plunge into Real Estate and add this great asset into my portfolio.

Now I understand everyones situation is unique and the best plan for someone wouldn't be the best plan for another. I am curious to see what you would if you were in my shoes.

I am a Canadian and grew up on the west coast on Vancouver Island and I spend some time around the West coast including Victoria, Vancouver, Kelowna and all of the most expensive housing markets in Canada. I DO NOT however live anywhere and spend most of my time traveling to the Canadian north for work and Internationally for pleasure. When I do go to Vancouver to visit family for about two months of the year I usually stay in a short term rental.

Now that you understand my current nomadic lifestyle, the location is not really a big issue for me. If I purchased a condo in Vancouver and used it for an STR when I am not there it would be beneficial. However, I feel that if I did that then most of my leverage and capital would be locked into that condo and It would be difficult to buy anything else down the road. But the city life is good fun and travel will pick up next year.

Another option would be to BRRR in a less expensive but up and coming area. This would allow me to get most of my capital out of a property and still be owning the asset. Maybe even use it as a STR and still personally use it when I am in town. The benefit to this idea is that I am already in the construction industry and am a plumber/gas fitter by trade. I have experience working with tradesmen and could contract it myself.

The 3rd option would be to start by House hacking. Maybe buy a single family home in a residential neighbour hood and build a suite in the basement then rent rooms. This provides me with a base but also the most appreciating type of asset. However, as a single man in my 30's, the suburbs is not the best place to set a base.

4th option is to buy a small apartment or multifamily in a much less expensive part of the country where its not such a cyclical market and my leverage can go a lot further. This will provide the very best cash on cash return I would just need to find a good property management company. 

5th option would to buy REIT's. however I can only put as much in as I have and would't be using the banks money.

Sorry for the long post, I am just looking for a little guidance form the best community on the internet. Thanks