Contractor · Mickleton, NJ · Member since 2020 · 114 posts · 112 votes
ive been asked this question a million times...i think my advice is sound, but looking for other opinions. FYI im an investor in the southern new jersey, philadelphia and delaware markets
Investor · Brooklyn, NY · Member since 2019 · 185 posts · 205 votes
5y
At 20% down on a 30-year-mortgage + savings for reserves and rehab gets you a property in the $60k to $80k range. That's more than enough in my market in Detroit (was all-in for $45k on my first rental and looking to be all-in at $70k on my 2nd).
While I don't know your markets well, I've heard that there are some solid neighborhoods around Camden. Just be careful (Camden or elsewhere) that you don't buy into a problematic neighborhood just because it's what you can afford. If you're only seeing options in sketchy, high-crime areas, you may want to save up for another 6 to 12 months until you have more capital to invest.
If you go this route, while you're "waiting" to save more capital, get started running analyses on 1 to 2 properties per day on your market and finding the right neighborhoods for you. Then, by the time you've got that extra capital, you'll already be a local expert.
Realtor · Denver, CO · Member since 2020 · 259 posts · 153 votes
5y
Hey @Account Closed! I think it definitely depends on a person's goals. If someone is interested in wholesaling deals, $20k is definitely plenty to get them off of the ground as far as direct mail campaigns etc. $20k could certainly be enough in different parts of the country to house hack as well, which is in my opinion a great way to get started. If an investor is willing to owner occupy part of a house/plex, they may be able to leverage that $20k into living for free which would accelerate their ability to save additional money for the next property, and so on and so forth. It's definitely a great way for someone to get their feet wet in the landlording space, as well as cut down on personal living expenses.
Investor · Brooklyn, NY · Member since 2019 · 185 posts · 205 votes
5y
At 20% down on a 30-year-mortgage + savings for reserves and rehab gets you a property in the $60k to $80k range. That's more than enough in my market in Detroit (was all-in for $45k on my first rental and looking to be all-in at $70k on my 2nd).
While I don't know your markets well, I've heard that there are some solid neighborhoods around Camden. Just be careful (Camden or elsewhere) that you don't buy into a problematic neighborhood just because it's what you can afford. If you're only seeing options in sketchy, high-crime areas, you may want to save up for another 6 to 12 months until you have more capital to invest.
If you go this route, while you're "waiting" to save more capital, get started running analyses on 1 to 2 properties per day on your market and finding the right neighborhoods for you. Then, by the time you've got that extra capital, you'll already be a local expert.
Real Estate Investor · Maplewood, NJ · Member since 2017 · 127 posts · 47 votes
5y
Hi @Account Closed. That is such a vague question that many newbies ask, I know I did when I first thought about getting into REI. One of my biggest pieces of advice is to have enough capital to cover the surprises. Anything from unexpected repairs, vacancy, and their own unemployment. Now that this pandemic has hit I recommend having even more capital in reserve. Preferably it's cash in the bank, but anything with liquidity such as GameStop stock or potential equity you can tap into if needed is fine as capital.
In the end, everything depends on the individual's risk tolerance, plan, and market. Learning, analyzing deals, and networking will always have the best ROI.