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Updated 7 months ago on . Most recent reply
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First time investor which direction do I go?
OK here’s my question. I want to get in to real estate investing and this would be my first time. If I had to pick which direction I should go if I want to make this an ongoing thing. I have 30 K in the bank and I can’t decide if I should buy a rental or a flip. I know there is pros and cons to both with the rental. I don’t want to have to wait a long time to save more money to buy my second one. With the flip I am very handy, but I would hate to get into something, not knowing how much It’s all going to cost. If you were in my shoes as a first time investor, what would you do? I have used the tools on the website and they have been fantastic but I just don’t know what direction I just need to go.
Most Popular Reply
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If you are going to do a flip, do a live in flip with the plan of living there for 2 years to sell tax free. You get the benefit of 2 years+ of appreciation, tax free gains, protect yourself from buying in a crappy neighborhood because it looks good on paper - you're going to live there...the best test for a good investment location is if it is a desirable place to live - and your risk of running out of cash is lower because you can take your time. It sucks to live in a job site, but if you can take it, it's a worthwhile pursuit. I'm on my 3rd one right now (41, married, and 2 kids - just trying to remove that excuse).
A traditional flip simply requires more cash than you have. Finding some sort of owner occupied house hack-ish option seems to be the most realistic path so long as your debt to income ratio is solid/lend-able.
Feel free to send me a message if you think that I can be a resource. I have nothing to sell and would be happy to help.