Newbie from Indianapolis (Hungry to succeed)

[Zlatan Ibrahimovic]

Hi All,

I am a new member from Indianapolis, IN. I have not included my real name on the account due to the nature of my full time job, however I am a real person and do share my real contact info when I network on the site. I am in the process of completing my real estate brokers license. I have about 150K ready to start investing in real estate. I am almost debt free, with a little bit left on my house and no other loans, so overall excellent credit history. I am very familiar with the Indianapolis market as I have lived here for some time. 

My first dilemma is really what to start with on my first deal. I am thinking about (1) purchasing a commercial property (stripmall, retail shop, apartments) or (2) starting slower with buying SFH's one by one and building up. I am also open to flips but given that I don't plan to quit my full time job yet, thought that holding and renting would be an easier option for the time being. I make decent money at the corporate job so if anyone can share some knowledge in terms of pro vs cons in where to start, I am open to take advice. I have been following blogs and listening to the podcasts for some while so I feel like that I have quite a bit of knowledge for a beginner.

I look forward in connecting with folks and sharing my experiences as I take on the journey to build my RE business. Cheers!

[Account Closed]

Hi Zlatan (lol),

Firstly, it's great that you've been listening to the podcasts and reading the blogs because that would be the first step to investing (education). Secondly, I would say the second option is better as a beginner. I think that will better allow you to observe your cash flow and not get overwhelmed with so many expenses from the first investment (especially from commercial buildings). 

Thirdly, the most important thing is cash flow. Creating a positive cash flow is your main objective. Since you already know the market, this will make your search easier. Can you maintain a positive cash flow with multiple properties?  

That is my advice,  I hope it'll help.