First investment Property PA

[Kay Bush]

I'd like to ask you for some advice for first time investor. Quick run down. I'm looking in the Philadelphia area. I have about 10-15k cash to invest in my first property. I'd like to flip, but I would also like a rental property. Not sure which way I should go. I'm assuming I'd get a quicker return on a flip. Could I get a personal loan for about 20k to use to purchase my first property instead of using my money? I know another option would be to get an investment property by way of a mortgage which I know is 10-25% down. I'd like to get into real estate full time and generate enough income in the next year to live off of. Is this realistic? Any advice on my first property? Should I get a cheap one for 20k or take out a mortgage? I went to the last auction in Norristown and I had no clue what I was doing, but I left with a little more knowledge than I came with. I'd hate to make the wrong decision with my money. I apologize if I'm all over the place.

Best,
Kay

[Jamal Pitts]

Hi Kay,

I wouldn't recommend starting out at the auction, those are very risky.  It took me over a year of just going and watching before I even started to bid on properties their. 

If you go the flipping route, you need to have a team already in place before making offers on properties.  People in your team should be, contractor, lender, and a realtor to start out with. 

Most likely with homes in Philadelphia you will have to go the hard money route for flips due to the possible poor condition of the properties.

One last bit of advise; when analyzing a deal, don't forget about your holding cost.  Most investors forget or under estimate this expense.  I would recommend you have a 12 month reserve cushion for your first deal.

Do your homework and take your time and you can make a lot of money in this business.

Good Luck