Tips for New Investors

[Adam Bielous]

Hello,

I am a new investor from North Jersey about 30 minutes from NYC so multi family properties are a bit pricey here. I am looking to acquire my first multi family property for renting out next year, 2021. I have a decent down payment i can put in - say, 50k.

Looking toward my future - I am torn between 2 options to start off my RE career:

1) going in on a smaller multi family deal (2 or 3 units) by myself, or...

2) going in on a larger multi family deal (4, 5, 6, etc.) with TWO or THREE other people to help finance the deal

Which option would be more beneficial in terms of cash flow (in general) and scaling for the next property after that?

Any advice would be greatly appreciated!

[Jaron Walling]

@Adam Bielous As a newer investor with less capital to work with you can't be picky. That's not what you want to hear but it's the truth. I was in a similar situation when I started out. Learn your market, run the numbers, and become an expert on what DEALS look like. When you're ready attack. The number of units don't matter! 

If you buy right, add value, and lock in good tenants you're already on the right path. The sky's the limit after that. You could cash-out ReFi, partner up, use private money, and other things to fund deal #2.