What to choose

[Joe Ferguson]

I have been watching my local market the past couple of years saving money and building credit for my first property.  I currently have two deals I am a looking to invest in and I think it is a great time to enter the market on the investment side.

The first deal a 30 acre parcel with two buildable parcels on it.  This deal would be $275,000 with the owner holding 80% of the loan for 5 years.  This property would be great to build two houses, subdivide and sell.

The second deal is a duplex with a storage building on the premises. The building is older and could be renovated. A perfect property to BRRR. The property is listed for $430,000 and I could live in the property while renovating the house.

Being my first deal in real estate what would be your advice to me and what deal would be best for a first property. Thank you for your advice and help!

[Eric DeNardo]

Hey @Joe Ferguson, 

Do you have any experience in development? It's a complex process and there are a lot of unknowns for a first time investor. I recommend the second deal - house hack the duplex. Live in one unit and rent out the other. Fix the unit you live in and when that's done, move into the other one and fix that unit. 

[Todd Anderson]

@Joe Ferguson,   Welcome to real estate investing.  

I totally agree with Eric, for your first deal look to something with as low risk as you can.  Development in the best situation carries a ton of risk.  Development also takes a lot of time to get to cashflow.  

There is still a good amount of risk with BRRRR but if you are owner occupying the property you are in a much better place. I would recommend to all first time investors to "House Hack" for there first and maybe even second deal. you will learn a lot from being your own tenant.

Best of luck on your Real Estate Journey.  

[Jaycee Greene]

Have you "run the numbers" more than you shared in your post? There are a lot of considerations for both options before you can figure out your expected profit/return. Happy to discuss in detail if you DM me. Good luck.

[Wale Lawal]

@Joe Ferguson

The 30-acre land parcel with subdivision potential offers owner financing, high ROI, and flexibility, but requires substantial capital, time, and expertise. It's best for investors with a medium to long-term timeline and experience in development projects. The duplex with storage building is ideal for a Buy, Rehab, Rent, Refinance, Repeat (BRRR) strategy, but requires accurate renovation budgets and tenant management. Choosing the best first property depends on the timeline, learning opportunities, financial comfort, and property appreciation and market demand.

Good luck!

[Trevor Finn]

Congrats @Joe Ferguson on getting ready for your first investment! Both deals have solid potential, but for a first property, the duplex might be a smoother entry point. Living in one unit while renovating the other lets you build equity and generate rental income, plus the BRRRR strategy could help you recycle your capital for future deals.

The 30-acre parcel is a great opportunity too, but subdividing and building may require more experience and upfront capital. Starting with the duplex could set you up with cash flow and real estate know-how to take on bigger projects down the line. Would love to hear an update on what you decide to do! All the best!