New Real Estate Investor

[Bryce Mosier]

Hey!  I am super new to the idea and business of real estate investing but am totally open to learn and work with anyone!  My first and foremost question is where to start?

Thanks,

Bryce Mosier

[Andrew Syrios]

Welcome to BP Bryce and good luck investing!

[Min Zhang]

Hey Bryce, welcome to BP! If the numbers don't make sense locally, consider exploring other markets and out-of-state investing. I recommend the Midwest for its affordability and strong cash flow potential. Using David Greene's Core 4 strategy (realtor, contractor, property manager, and lender) helps me invest with confidence. I focus on Columbus, Ohio, where growth is fueled by major tech companies like Intel, Meta, Amazon, and Google. I also invest in Cleveland and Dayton. If there's anything I can do, please let me know!

[Simon Ashbaugh]

Quote from @Bryce Mosier:

Hey!  I am super new to the idea and business of real estate investing but am totally open to learn and work with anyone!  My first and foremost question is where to start?

Thanks,

Bryce Mosier

Hey Bryce, welcome to BiggerPockets! I'd say first identify a strategy, choose a market that aligns with it and establish your Core 4 Real Estate Team.

The main challenge I observed is that individuals often lack a clear end goal or strategy or they select a market that doesn't align with their chosen strategy. Happy to answer any questions you might have. All the best!

[Meghan Carson]

Hi Bryce! 

Welcome! 

I agree with alot of these responses. 

Here are a few good questions to ask yourself:

Are you wanting to manage yourself? 
What type of returns are you expecting? 
How many doors are you looking for? 
What price points are you wanting to stay within? And so on.

Memphis, TN and Little Rock, AR are amazing markets for first time investors. There is growth in both of these markets, with major companies in each it causes a higher demand for rentals. 

If I can assist you in anyway, please let me know! 

[Regina Blake]

Hi, and Welcome to BP to answer any questions you may have I would have to let you know that Ohio is a good choice to look at investing. My clients are from all over the world. Check it out and let me know if you have any questions. Good Luck!

[Jimmy Lieu]

Quote from @Bryce Mosier:

Hey!  I am super new to the idea and business of real estate investing but am totally open to learn and work with anyone!  My first and foremost question is where to start?

Thanks,

Bryce Mosier

Hi Bryce, welcome to the BiggerPockets community! You've come to the right place. You can take advantage of all the amazing resources here in the community. Determine what strategies you want to do and connect with realtors in the markets you want to invest in. Happy to connect and answer any questions you have!

[Michael Smythe]

@Bryce Mosier

Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.

If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.

So, when investing in areas they don’t really know, investors should research the different property Class submarkets.

Here’s our OPINION for the Metro Detroit market (use as a template for your target area!) that we’ve learned in our 24 years, managing almost 700 doors across the Metro Detroit area, including almost 100 S8 leases.:

Class A Properties:
Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.
Vacancy Est: Historically 10%, 5% the more recent norm.
Tenant Pool: Majority will have FICO scores of 680+, zero evictions in last 7 years.

Class B Properties:
Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.
Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.
Tenant Pool: Majority will have FICO scores of 620-680, some blemishes, but should have no evictions in last 5 years

Class C Properties:
Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation. Can try to reposition to Class B, but neighborhood may impede these efforts.
Vacancy Est: Historically 10%, but 15-20% should be used to also cover tenant nonpayment, eviction costs & damages.
Tenant Pool: majority will have FICO scores of 560-620, many blemishes, but should have no evictions in last 2 years. Verifying last 2 years of rental history very important! Also, focus on 2 years of job/income stability.

Class D Properties:
Cashflow vs Appreciation: Typically, all cashflow with little, maybe even negative, relative rent & value appreciation
Vacancy Est: 20%+ should be used to cover nonpayment, evictions & damages.
Tenant Pool: majority will have FICO scores under 560, little to no good tradelines, lots of collections & chargeoffs, recent evictions. Verifying last 2 years of rental history and income extremely important to find the “best of the worst”.

Make sure you understand the Class of properties you are looking at and the corresponding results to expect.

PM us if you’d like to discuss this logical approach in greater detail!

[Blake Clothier]

Hi @Bryce Mosier, 

Welcome to the Bigger Pockets community! 

To jump right in, the approach you take depends on how much time you can dedicate to your first property. If you have ample time and want to be hands-on, I’d recommend choosing a market that interests you and building a team—including an agent, contractors, and a management company—to support you throughout the process.

However, if you're busy and don't have the time to manage all these aspects, turnkey options might be a better fit. These allow you to invest without the hassle of finding properties, agents, and management. My family owns REI Nation and Premier Property Management Group, where we handle everything from purchasing and renovating homes to managing them afterward. Our operations are primarily in the Southeast, offering a seamless, in-house experience.

I’m glad to connect and assist in any way I can. Best of luck with your investing journey!