Newbie to real estate investing. Best way to get started?

[Allie Foland]

My husband and I have been wanting to get into real estate investing for a few years now and don’t know where to start. I am a newer real estate agent and he has a w2 job. We have been able to save 20k this past year for our first deal. We can’t decide if we want to get into rentals or flips. If you were a new investor in our situation where would you begin?

[Gary Nestler]

Hey Alley.  My wife and I were in a similar situation over 25 years ago.  I have 31 units now.  She’s a teacher with the w2 job and I owned a delivery business that I sold in 2019.  My wife has the stable w2 job which is important to get loans.

If were you now I would find a single family home in the city if Rochester and see if you like being a landlord.  People talk about the 1% rule.  In Rochester I try to get 1.5 to 2% rule because the property taxes are too high compared to most of the country.  Just make sure it’s something you can sell and in a decent neighborhood so get your money back if you find out it’s not for you.  I think to start flipping in this sellers market would be extremely difficult right now for someone with no experience.  There are people that flip houses full time in Rochester that will most likely scoop up those potential flip houses before you or I would ever see them.  

Also I would consider joining a meetup here in town to find out what other investors are doing.  You be able to find someone to partner with if you really want to flip a house.

Well good luck to you.  Hope this helps.