New Investor in Washington DC

[Garret Kirczow]

Hey BP, 

I have been following the community and trying my best to read more about real estate and rental property investing. Come September, I will be living in DC full-time (I am currently a college student) and want to make some early investments. I estimate that I will have approximately 10-15k to invest in a rental property outside of the property I will be living in (for simplicity assume I cannot use an FHA or invest using owner-occupied means). Are there feasible investments out there where I could pay such a low down payment in such an expensive area (Arlington/DC)? If not, would you recommend I do things like wholesaling to get more money and invest later? Overall, I'm looking for any particular strategies or directions you would recommend for someone in my situation. Thank you so much for your help and insights!

[Andrew Michael]

In my opinion I would use that money to partner with someone and take a stab at some simple cosmetic type flips until you build more capital or drive for dollars and try to wholesale/bird-dog some deals.  From a traditional standpoint, the only two feasible places around here where 10-15k would get you a rental would be Baltimore and Hagerstown.  At those price points you will be in neighborhoods you do not want to be in.  In addition, rentals require you have a decent amount of operating capital.  You are young and have plenty of time to invest.  I would take some time, educate yourself, and partner with people until you figure your path in real estate.  

If you are dead set on a rental then perhaps you will want to explore owner financing routes and ways to structure no or low money down deals.