Young Entrepreneur Seeking Advice on Diversifying into Real Estate

[Zachary Samuel]

Hello BiggerPockets Community,

I'm a 31-year-old business owner with a thriving enterprise generating mid seven-figures annually. My journey in entrepreneurship has been rewarding, and I'm now eager to diversify my investments, particularly in real estate. However, as a novice in this field, I'm seeking guidance from the experienced members of this forum.

Background:

• Age: 31
• Business: Growing rapidly with substantial disposable income that isn't needed to grow or operate. Currently sitting in 4.75% high yield business checking accounts
• Current Real Estate: Jointly own a single-family home in Pennsylvania as a residence, no rental properties.
• Residence: Pennsylvania and South Florida (during winter months).
• Investment Capacity: Approximately $250k per quarter as down money, open to starting smaller.

Goals and Preferences:

• Seeking a relatively simple and low-maintenance entry into real estate investment (not looking for major rehabs, value adds, etc. - unless I should still be trying to! I need to keep my focus on growing my business)
• Interested in residential properties (single or multifamily).
• Looking for advice on the type and value of properties to target as a beginner (my family owns a bunch of commercial real estate)
• Open to suggestions on expected returns and whether to focus on long-term leases or short-term rentals with management.
• Looking for suggestions on if I should look in both PA & FL (FL is significantly more expensive, but a drastically different market & renter)
• Primary objective: Diversifying assets, with a focus on slight income generation or offsetting expenses, and mainly long-term appreciation and growth in assets.
• Desired Return: Unsure, but 5%+ sounds great.

Given my limited experience in real estate, I'm here to learn and absorb as much as I can from those who have walked this path. What strategy would you recommend for someone in my position? Should I lean more towards single-family homes or multifamily units? What regions or types of properties would be best for a beginner like me, considering my financial capacity and goals?

Any insights, strategies, or even pitfalls to avoid would be greatly appreciated. My aim is to build a portfolio of assets that not only offsets expenses but also aligns with my long-term vision of financial diversification and stability.

Thank you in advance for your valuable advice!