New Investor Looking for Advice on Developing Investment Strategy

[Joseph Savold]

Hi all! My name is Joseph and I live in Honolulu. I have been interested in real estate investment since I read Rich Dad Poor Dad in high school, and now I finally have a full-time job to fund my endeavors. I found this website and have been finding a lot of the blogs and forum posts really informative and useful and I am very eager to get started.

Unfortunately, my work involves a lot of overtime (50-60 hour weeks during busiest times of the year) as well as relocating every 2-3 years. With this in mind I was leaning towards turnkey properties. My goal is to get 15% of my cash investment in annual cash flow. Is this possible/likely with this kind of investment?

While I currently only have a few thousand to invest, I am in a position to save around $25,000 a year to invest. Should I wait till I have a bigger bankroll or should I try to find deals now?

I'd appreciate any advice for a new investor. Thanks!

[Bryan Pham]

Hi @Joseph Savold, Welcome to BP!

It is very possible to get a 15% return on your investments, but it also matters where you decide to buy. There are numerous things to consider: location, growth potential, property management cost, median rent, etc. The numbers have to work in your favorite, it is hard but not impossible. Nothing worth doing is easy, right?

$25K is definitely enough to get started, if you are relocation every 2-3 years it might not be a bad idea to do a FHA or 5% conventional owner occupied (for one year) with a multifamily or even a single family house and house hack the other rooms. Keep in mind that if you were to choose any of this strategies please do your research and factor the PMI into your annual cost.

Best of luck to you on your real estate investing endeavors.