How to get started with 5K

[Kaleb Wright]

If you had only 5k to start out with how would you use it to get in the door as an investor? Thanks!

[Jon Reed]

With just $5,000... I would find a 100K duplex that needs some TLC. Put in an offer and have them cover all closing costs so you can roll that into the mortgage. That leaves you with $1,000 after closing ($3k for down payment and $1k for misc costs that goes along with buying a property such as tax and insurance escrows).

With that $1,000 I would move into one side of the duplex and put that $1,000 towards renovating the empty side. In about 2 months of part time rehab that side will be rentable and pull in enough to cover your mortgage. Then start on the rehab on your side (like a live in flip). After two year start looking for your next duplex to live-in and flip. You can end up with a nice nest egg of multi-family units after just 5-10 years.