Going big on your first investment?

[Chris Wilkerson]

Hey there everyone! I have been on my REI education journey for a little over year and have recently began working in the RE industry as an agent. Long before becoming interested in RE investing, I have saved up funds with the intent to do something with it one day. Like many, I was already putting money into IRAs, 401k, and 18 months ago I overcame my fear of losing money & lacking knowledge and put money into the stock market (still doing surprisingly well despite COVID-19).

I am still learning and forever will be, but I have begun wondering if the capital I have amassed over the years puts me in a position to be able to obtain a much larger investment portfolio sooner instead of having to wait to save up. Of course my major concern would be making newbie mistakes and losing a ton of money (I have been reading BP forums, books, podcasts, and local networking for 1.5+ years) but I still always have the fear of not knowing enough.

My primary question is, did anyone purchase something big early as their first ever RE investment (or very soon after the first) such as an apartment building, a multi-family package deal, SFH package (or quick subsequent purchases) with a total combined PP of $750k+? If so, how did it work out and what were the pros/cons? Thank you for any feedback, advice, and wisdom!

[John Warren]

@Chris Wilkerson you are correct that cost is relative, although 750k is just a funny spot in most markets. Here in Chicago that is just a pinch more than most 3 units would go for in A neighborhoods. In the burbs where I work, that is a bit more than most 6 units (they go for 100k per door if they are in good shape).  I prefer looking at each property and trying to see if it makes sense as an individual deal.