How to invest 30k in real estate?

Rental Property Investor · Florence SC · Member since 2017 · 12 posts · 20 votes

I want to get started investing. I have already studied for years but just didn’t have the money save up to make a move. Now I have 30k save up! Any ideas of what could be a good avenue to take ?

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John MorganPro Member

Rental Property Investor · Grand Prairie, TX · Member since 2018 · 2k+ posts · 2k+ votes

@Monroe M.

I would find a property for around 100k and put 20% down and keep 10k as a cash reserve for maintenance. Then save all your positive cash flow from this rental and pick up another property when you have another 20-30k in the bank.

I bought a property two years ago for 100k with 20k down on a 15 year loan. I’m only making $300/month off it. Not great, not bad. However, this home has appreciated and is worth 150k now. And now I only owe 71k on it. So my 20k turned into 79k if I sold it...minus closing costs and real estate commission. It’s only a base hit, but after you start accumulating several of these, it starts to add up. But for now, I’m happy with $300/month after all my expenses.

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Matthew Irish-JonesBusiness Member
Real Estate Agent · Buffalo, NY · Member since 2017 · 2k+ posts · 2k+ votes
6y
@Monroe M. Do you own a home? An FHA loan is a great way to get stared with your first double. If you can't use an FHA loan look for a double family home that will cash flow within your market. Find an investor friendly agent and they should be able to put some properties in front of you for analysis.
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8 Reply
Monroe M.
OP
Rental Property Investor · Florence SC · Member since 2017 · 12 posts · 20 votes
6y
@Matthew Irish-Jones yes I own a home.
1 Reply
Monroe M.
OP
Rental Property Investor · Florence SC · Member since 2017 · 12 posts · 20 votes
6y
@Matthew Irish-Jones I will look into the other option as well thank!
0 Reply
Arlan Potter
Investor/Accountant/Builder · Meno, OK · Member since 2014 · 1k+ posts · 918 votes
6y
@Monroe M. I have bought many homes for less that $30,000
1 Reply
John MorganPro Member
Rental Property Investor · Grand Prairie, TX · Member since 2018 · 2k+ posts · 2k+ votes
6y
@Monroe M.
I would find a property for around 100k and put 20% down and keep 10k as a cash reserve for maintenance. Then save all your positive cash flow from this rental and pick up another property when you have another 20-30k in the bank.
I bought a property two years ago for 100k with 20k down on a 15 year loan. I’m only making $300/month off it. Not great, not bad. However, this home has appreciated and is worth 150k now. And now I only owe 71k on it. So my 20k turned into 79k if I sold it...minus closing costs and real estate commission. It’s only a base hit, but after you start accumulating several of these, it starts to add up. But for now, I’m happy with $300/month after all my expenses.
38 Reply
Josh McCullough
Investor · Jackson, GA · Member since 2011 · 228 posts · 126 votes
6y
@John Morgan you could flip a house using hard money or with a partner. Some hard money lenders are funding 95-100% of purchase and rehabs right now. That's how I saved up to purchase a few multifamily properties.
11 Reply
Collin Sceski
Member since 2019 · 5 posts · 6 votes
6y
@John Morgan your ROI is 18. That is really good for a buy-and-hold. I am just starting out but I would love to find a property worth 150k that cash-flows $300 per month. I am assuming your able to charge approx $1500 per month in rent? That sounds like a good market for investing. Best of luck.
6 Reply
John MorganPro Member
Rental Property Investor · Grand Prairie, TX · Member since 2018 · 2k+ posts · 2k+ votes
6y
@Josh McCullough
I wouldn’t recommend him to flip a house starting off in real estate unless he has an experienced partner. I’ve thought about it, but it seems like a lot of work and taxes due for only 10-20k. How many have you flipped and what is your average profit after all expenses including holding costs and taxes? Maybe I should consider this more!
2 Reply
John MorganPro Member
Rental Property Investor · Grand Prairie, TX · Member since 2018 · 2k+ posts · 2k+ votes
6y
@Collin Sceski
I paid 100k for it and getting $1,150/month in rent. The going rate for rent is about $1,250/month. It’s getting hard to make the 1% rule in north Texas these days. But at least properties are appreciating really good lately.
0 Reply
Brent Paul
Rental Property Investor · Shakopee, MN · Member since 2015 · 985 posts · 374 votes
6y
You have many options.
If your current home has equity you may be able to get a HELOC to help with a downpayment.
You could still get a home with 5% down conventional and set the rest of the costs toward repairs.
Fix and flip. (Not recommended for the beginner, but it can be done)
Partner up with someone more experienced and split the deal with someone.
Also I highly recommend you attend some local real estate meetups in your area. You would be surprised how many people are looking for partners or wholesalers needing buyers. It can't hurt and only takes up a few hours of your time.
3 Reply
Josh McCullough
Investor · Jackson, GA · Member since 2011 · 228 posts · 126 votes
6y
@John Morgan
Hey John, I've flipped about a dozen homes over the past few years. Nothing huge. Never made less than a 30% return and have doubled my money on a few. Only cosmetic flips. Paint, flooring, counter tops, some sheetrock work. Super easy! I don't stress much about the taxes, but yes you're going to pay 20-30% on that income.
3 Reply
Anthony Petrozzella
Nesconset, NY · Member since 2016 · 25 posts · 11 votes
6y
@Arlan Potter where ?
0 Reply
Anthony Petrozzella
Nesconset, NY · Member since 2016 · 25 posts · 11 votes
6y
@Josh McCullough are you conducting your real estate investing in GA ?
0 Reply
Josh McCullough
Investor · Jackson, GA · Member since 2011 · 228 posts · 126 votes
6y
@Anthony Petrozzella
Yessir, all in the same area here in GA.
0 Reply
Dennis M.
Rental Property Investor · Erie, PA · Member since 2018 · 6k+ posts · 9k+ votes
6y
@Monroe M.
In my world it would be ;Buy a duplex and collect rent
1 Reply
Monroe M.
OP
Rental Property Investor · Florence SC · Member since 2017 · 12 posts · 20 votes
6y
@Arlan Potter care to share more details on how ?
0 Reply
Monroe M.
OP
Rental Property Investor · Florence SC · Member since 2017 · 12 posts · 20 votes
6y
@John Morgan thanks !
0 Reply
Monroe M.
OP
Rental Property Investor · Florence SC · Member since 2017 · 12 posts · 20 votes
6y
@Gabe Rivera thanks Gabe message me so we can chat !
0 Reply
Sterling Chapman
Rental Property Investor · Baton Rouge, LA · Member since 2018 · 65 posts · 76 votes
6y
@Monroe M. I started with $30k, put 15% down on two separate $75k houses. One rents for $1060 with a $560 note, the other rents for $1185 with a $585 note. Total cash flow is $1100 a month. In a perfect world that would be a 44% Cash on Cash but after some maintenance expenses I end up getting about 30% Cash on Cash. Didn’t make me rich but it was a great first step that gave me the confidence and credibility to peruse some bigger projects shortly after. Good luck!
“The secret to getting ahead is getting started”
Mark Twain
18 Reply
Gabe Rivera
Member since 2019 · 7 posts · 1 vote
6y
@Monroe M. Hey Monroe , is what I mentioned something you would be interested in? If so what questions do you have?
0 Reply
Ola Dantis
Multifamily Syndicator · Houston, TX · Member since 2016 · 1k+ posts · 2k+ votes
6y
@Monroe M.

You've made it to 30K, why rush.

Keep saving your way to, say, 50k or more, then buy a small multifamily property!
4 Reply
Monroe M.
OP
Rental Property Investor · Florence SC · Member since 2017 · 12 posts · 20 votes
6y
@Ola Dantis that don’t sound bad neither !
0 Reply
Jankely Hidalgo
Real Estate Investor · NJ · Member since 2014 · 28 posts · 3 votes
6y
@Gabe Rivera
Hey Gabe I’m interested in a fix and flip for income purposes. I’ve spent all my time focusing on rentals. But I would love to
Partner up with some one with experience where I can bring good work ethic and money to invest in the deal.
I saw you post offering to partner up with some one who had money to get started.
0 Reply
Ola Dantis
Multifamily Syndicator · Houston, TX · Member since 2016 · 1k+ posts · 2k+ votes
6y
Originally posted by @Monroe M.:
@Ola Dantis that don’t sound bad neither !

It's not at all 🤗
0 Reply
Nic S.Pro Member
Danville. CA · Member since 2017 · 313 posts · 220 votes
6y
@Monroe M. What are your RE goals?
1 Reply

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