Tips on how to make it

[Michael Cavitolo]

Hello everyone, I should be finally getting over these nervous jitters and buy my first investment property. I'm not trying to get rich quick or anything. I'm not too focused on fix and flips, but im very interested in buy and holds. 

The MAIN goal is to make at least 100k a year. Is that doable? Any tips or suggestions you guys might have for me?

I live in the Austin, Texas area, been trying to do as much research as possible about the market here. I have about 45k in the bank at the moment, but should have at least 120k saved by January. Do you guys prefer me wait till January or just dive in with the 45k now? 

Your replies will be MUCH appreciated. THANKS! 

[Kenny Dahill]

Nothing wrong with having ambitious goals.  A few suggestions to early investors: identify your weakness and learn.

If you do not understand the finances and how everything interacts with one another, learn it.  In my opinion, the best way to learn how it all ties together is to create your own pro-forma's instead of using somebody elses.  Once you've created it then practice analyzing deals.  I used to do about 5-10 per day during the week just to get the hang of it.

If you do not understand construction and afraid you'll be taken advantage of, go learn at Habitat For Humanity.

Looking for deals can be tough these days, especially in Austin.  But talk to people who are investors or realtors as they might know of an opportunity.  I would start looking today, deals don't often pop up for your first time so if you think you'll be ready in Jan then chances are it'll take a few months after to actually get a deal.

And finally something I did a little but not too excessively: reverse engineer.  You know your goal of $100k, but what's the plan to get there?  How many units, properties, how fast can you acquire, are you full or partner, etc.  That will really help set your path to achievement.

Best of luck!