I'm Planning to use $5000 cash to invest in Real Estate.

[Randy Mbouge]

Good Afternoon. My name is Randy Mbouge. I'm a real estate agent in Houston, Tx. and I'm at a place in my life where building wealth is one of my priorities. My initial plan was to purchase a single family residential property with 3% down but I understand that more doors, creates an opportunity for more cash flow. So, I'm leaning more into owning a duplex or triplex property for my first rental property. I just wanted to see what all of you would do in my position? 

Also that $5000 cash is just a tentative number. I can provide more given the numbers and deal makes sense. Thank you all. I am very grateful. 

[Matthew Rolf]

@Randy Mbouge not a ton to go off of, but if you're thinking about only using around 5k you'd be looking at buying a home with a 3.5% down payment FHA loan with a down payment assistance program when also considering closing cost. As you know, you can help yourself out with up front costs using paragraph 12 in the 1-4 Family Contract. In my experience most lenders also want to see 2 months of reserves minimum in your bank account.

Ok to your question...yes small multifamily is a great way to scale up, but for the very brief info you gave, it might make most sense to buy something like a 4 bedroom home and rent out the other 3 rooms to reduce your cost of living and possibly still make a little extra on top of that.

Feel free to shoot me a message if you want to talk about it anymore.