How to get started in real estate with only $10k

Question

Hi everyone! I’m very new here and have so much to learn. I have read many books and listen to audiobooks and podcasts everyday so I’m learning more everyday. I have saved up 10k and plan to keep saving but I was wondering if there are ways that anyone has used this amount of money to get started in real estate? I am not afraid of the answer keep saving and I’m truly interested in any advice I can gain from everyone here!

Corby Goade · Answer

What a great start! I never had $10K to my name when I was getting started. You definitely have enough to house hack- buy a property for yourself with the intention of making it a rental in a year or so. Even better if it needs some updating, and better yet if that's enough to get yourself a small multi in your market.

You can do FHA with 3.5% down- less in some states with down payment assistance, but you're better off doing a conventional at 5% down if you can swing it.

Not quite enough to buy in your market yet? Partner up with a friend and buy one together a be roomies for a year.

The key is taking action, not thinking about taking action.

Best of luck!

Nicholas L. · Answer

@Josh Willis

welcome.  congratulations on saving up 10K - that's very impressive.  a few reactions.

-i'd keep saving.  RE isn't going anywhere.

-wholesaling is not investing.

-REITs can be volatile.  be cautious about how much is in REITs vs. how much is in savings.

-go to meetups and network.  make friends.

there's no rush. the worst possible thing you could do would be to put your nest egg into something and lose some of it and set yourself back.

Bryan Stengel · Answer

Hi Josh, that is amazing!  I would say try to save a little bit more.  If I had ten thousand liquid cash to spend, I'd probably do a house hack two-family and obtain an FHA loan with only 3.5% down.  I'd say if you saved maybe between twenty to thirty thousand dollars, you'd be in slightly better position.  It doesn't hurt to go over the numbers with a lender though who could give a breakdown of what a closing might look like depending on your buy box.  Overall, I think this would be the best strategy.  A house hack for a primary residence for about two years and then you could repeat this again.  It all depends on what your goals are.  Hope this helps and best of luck!

Alecia Loveless · Answer

@Josh Willis I’d look to househack. Especially since on a 1-4 unit property you can get low down payments, 3.5-5% down.

If my partner wasn’t risk adverse and unwilling to move frequently I would buy a new property every 1-1&1/2 years using this method.

Jay Hinrichs · Answer

try to buy some raw land and flip it.

Wale Lawal · Answer

@Josh Willis

House hacking involves buying a small multi-family property and renting out units to cover mortgages. Partnering with others can reduce risk and access better deals. Wholesaling, investing in REITs, private lending, and micro-investing platforms can diversify properties. Preparing for a BRRRR can involve buying distressed properties, rehabbing, renting, refinancing, and repeating. Short-term rentals on platforms like Airbnb or VRBO can cover costs. Education and networking can help refine strategies.

Good luck!

Lorraine Hadden · Answer

Entering the real estate market with $10,000 is not only possible–but it can be achieved through innovative investment avenues like FRACTIONAL Real Estate investing or investing in TAX LIENS - research these two options.

Keep us posted on how you end up investing that initial $10K and good luck on your journey!

Bud Gaffney · Answer

house hack!

Ko Kashiwagi · Answer

Househack, creative financing (seller financing/subject to), buying properties through lien auctions, partnering with someone who has cash.

How to get started in real estate with only $10k

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