Best Way To Invest $20,000

[Norman Alsumairi]

Hey BP community. I’m 23 years old, I’ve always wanted to get into real estate and slowly build into doing hopefully 2-3 deals a month. But I gotta start somewhere

I might be closing on my first deal this week but I want the BP communities knowledge and insight.

Do I try and do the BRRRR Method?

Maybe get a multi family complex on an FHA?

Rehab and flip?

Drop down your thoughts below 🦕

[Anthony Gayden]

Originally posted by @Jody Sperling:

Norman,

I'll assume you already own a primary residence, and even if you don't, my approach wouldn't change. If you have  a spouse and/or children, my approach would change.

Assuming you haven't "settle down" yet, if I were in your position, I'd hunt for a 4-plex multifamily home where you could live in the worst of the 4 units and rent out the other three.

In my market of Omaha, Nebraska, I can find four unit properties that would not only cover all my cost of living, but cash flow with me living in one of the units.

Obviously, it's a bold strategy to go from not being a landlord to managing three separate tenants, and if you live in the place, I imagine you'll want to manage it, but if you are the type of person to study, risk, and follow through, you will drastically improve your situation by doing this.

It would be my path because I could get so much more real estate on a primary than an investment property. With $20k, you could qualify for a $400k FHA loan at 5% down. Obviously, that would leave you no margin for error and you wouldn't necessarily want to max out your purchase power, but that's a huge difference compared to a commercial loan where $20k Would get you an $85k property.

Best of luck. What are you anticipating closing on this week?

You must be finding all of these 4-plex buildings off-market because I haven't seen many on the MLS in Omaha.