All Forum Posts by: Gerardo Castillo

Oh man, that's a great question!  I've had many a golden and profitable conversion with Josh Morphew of Insightful Tax and Advisory in Oklahoma City.

What I would do and what you want to do may be two totally different things. For example, I would buy a STR in an established vacation rental area. But maybe that's not the type of investment you're looking for.

I'd recommend starting with some internal reflection. 

What is your goal with purchasing real estate? Is your focus cash flow or simply diversification from the stock market? Are you wanting completely passive income or are you willing to do a little work to get more cash flow? Are you local or is this an out of state purchase? There's so many ways to invest in real estate that you really need to figure out what you're wanting out of it before you dive into learning about a certain investment or strategy. 

Put down payments on 10 flips and partner with people who have their own contractors and will run the show 

Are you trying to do passive investment or active hassle or BRRRR?

That is a hard question without lots of context.  For example, is this $100K your entire savings or is this a $100K you are willing to try out real estate investing?   How much time do you have?  What is your credit like?  What is your job situation?  Depending on how you answered just those questions, I might recommend very different things.

Knowing that we don't know much about you, I would say that single family rentals are probably the easiest place to start.  Get some education so you know how to distinguish a good deal from a bad one.  Learn about how to manage the properties and then take action to get going.

I would never recommend you sink 100% of your cash into a deal.  You need money for reserves, unexpected problems, occasional vacancies, and the like.  With that in mind, I'd try to find a deal where you are putting down less than $40K on your first property.  Run it for a few months.  Get to see how it operates.  Then go buy another property.

We have been helping investors purchase about 100 houses every year for the past few years in Montgomery.  Rents are catching up with the all-in home prices.  We can still get really close to the 1% rule.