New to real estate and seeking some advice

[Alex Kanaval]

Hi everyone, I’ve been listening to the bigger pockets podcast for a few months and I’m very new to real estate investing.

I have an opportunity to get a townhouse for $15,000-$20,000 under market value. This townhouse is in very good shape and in a nice part of town and is owned by a friend of my sisters. He needs to sell it fast because they are moving out of state. My question is, if I pick this property up would it be better to try and wholesale it or buy it and immediately sell it or is there a better option? 

A little background on what I have going on.i currently live in Phoenix and I’m getting my house ready to be put on the market to sell and hope to have it on the market by the end of January. I’ll be moving down to Tucson some time in March. With what I’m listing my house  for, I should make around $50,000 profit. With this money I would not be able to purchase this other townhouse cash, I would still need to get a loan for it. My sisters friend wants to sell his property in March and I’m trying to figure out what my best option is in this situation.

I know opportunities don’t just end up in your lap like this and I want to take advantage of it. Thank you for any and all the help

[Matt Horn]

Hello Alex,

Seems like a great opportunity with several options! Would you considering occupying the townhome? If so, it would make a lot of sense to buy it with FHA or a loan with a small down payment and capitalize on the low interest rates. Occupy the home for a period of time and then convert to a rental if you decide to live elsewhere.

If you are looking for a quick profit, the wholesale route may be the way to go but that really gets back to your investment strategy and goals.  If you are looking for long term holds, this would be a great candidate to buy as a rental.  

The biggest challenge in the Tucson market is finding good deals and you have seemingly found one, so this is an exciting way to kick start your real estate investment career!

Feel free to reach out to me if you want to discuss it further and good luck!