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Updated about 4 years ago,
How to scale in expensive market?
Hello,
HELP NEEDED -- My name is Harry James and I am a new real estate investor. I have the real estate "bug" and I have spent the last 3 months evaluating my local market and learning everything I can about real estate investing.
Here is my challenge: I live in Massachusetts and a large majority of the properties I have found (zillow) are between 200-300k. My challenge is scaling a real estate business when you have to shell out 25% on an investment property. I have spent the last 3/4 years saving to get the 80k needed for a down payment but I don't see how this approach is scale-able if I have to wait another 3 years to save up for another purchase.
Soooo what I am considering is... Do I invest 300k into a turn key duplex in Worchester that cashflows $800 a month as my first investment or do I try and find a BRRR property with no experience in demo's/construction where I can recoup my down payment and do it again.
I am sure y'all real estate wizards have some awesome advice.
I appreciate this community and I am all ears.
Thanks you.