Scared Newbie, where to start? (Market doesnt seem favorable)

[Shonari Wynter]

Hello Biggerpockets,

My wife and are ready push all our chips forward and jump into Real Estate, but of course as newbies we have alot of doubt. The biggest one being location. We are located in Orangeburg, South Carolina which is probably as rural as it gets (about 45 minutes from Columbia, SC). We have no clue where tostart. We are thinking about flipping for our first project in order to get enough capital to start buy and hold. Any advice?

We have looked at recently sold properties in the area and there aren't many so we are nervous; if we go ahead and take a loan for which we are approved, buy and fix a property we might now be able to flip it. HELP!

[David Sisson]

You want - especially for your first property - to play it safe. You are using your money to learn. 

I like:

- Properties that have multiple exit strategies (a flip, or a buy and hold, or a house hack, etc)

- Properties where you can add value easily, and maybe in several different ways (split the land to multiple properties, simple cosmetic rehab, add another bedroom, add another bath, add another unit, etc). 

The ideal first flip project is a single family, roughly 1100-1200 square foot granny house. This is a house that's fully functional, in good condition, but has dated finishes. You COULD rent it out right away, but you PROBABLY want to clean, paint, put in new carpet, maybe some new fixtures in the baths and kitchens. This home is sold at a discount, probably because the family just wants to quickly unload it. 

Personally, I'm starting to get interested in gut rehabs in homes that have good "bones". These homes should be MUCH cheaper. They are a bigger project for a newbie.