25 sitting on 25K

[Kristin Holmes]

Hey Everyone,

I'm technically not an investor yet because I haven't done anything but save money with the intention of investing in RE. I live in SoCal and after reading through BP blogs and the beginners guide (amazing by the way) I'm leaning toward buying a multi-unit property. But i'm curious of what others have done or wish they did when they first started. If you were in your mid twenties with about 25k in the bank how would you start your real estate investment journey? Buy a place in CA, buy a couple cheap houses outside of CA? Multi-unit, SF, flipping?

[Annunciata R.]

Use it as a down payment for a home you will be happy to live in as your rent if will be automatically eliminated. I would not wait till you can afford a multi unit because your money would be depreciating by making 1% (if that) in the bank as opposed making more during this house price rise. Perhaps you can consider finding a Joint Venture partner who is in the rehab business you will be able to keep an active eye on your investment learn a few things and make a higher return on your investment. That said you are always better of taking off on your own.