Originally posted by @David Rambadt:
Originally posted by @Immanuel Sibero:
Thank you @Michael Lee. We're practically neighbors!
In the construction business since 17? Wow... that must come in handy in a fix/flip deal :-) I became interested in real estate by accident. I have been the plain old regular 9 to 5er. Bought my starter house and lived in it for 6 yrs or so, then upgraded to a bigger house but decided to keep the first house because of the housing crash and rented it out. This turned out to be a good move as house prices in our area are just ridiculously high now. So I now have passive rental income and a good amount of equity that can be cashed out and redeployed. This had really sparked my interest in the real estate investing in general and rentals in particular (I like the "passive" nature of rental income). So I decided to look into doing more rental houses and real estate investing in general. Little did I know there is soooo much to learn and it's a pretty crowded space :-) But I can see there is enough to go around for everybody. I have since bought another rental house.
I have never done a fix/flip but it interests me and am learning as much as possible (bought J. Scott's books on rehab and flipping). One of these days, hopefully soon :-) I will be ready to get my feet wet at which time I will reach out to you and take you to lunch... my treat :-)
Thanks again,
Immanuel
Mixing business models can really stunt newbie investors. If the rentals are working for you why not stay with that vs. diving into an unknown? Its better to get good or great at one thing vs. dabble in tons of stuff, mastering none. If you really want to tackle a rehab I would suggest Brandon's BRRR strategy which will keep the property as a rental providing you with passive income. Additionally it will open the door to lower total cost properties better fitting the 1% and 2% rules. I'm a big fan of NTAREI, sign up for their mailers and attend the workshops. Hope to see you at a few future meetings
@David Rambadt Hi David, excellent point! The rentals seem to be working for me so far. I was fortunate to have good credit and some capital to deploy which had allowed me to jump start my real estate investing by buying and holding. Many do not have that luxury to start their investing and have to work a little bit harder (i.e. wholesaling and/or fix/flip). My interest in the fix/flip space is particularly in the rehab area (i.e. the "fix" part). As a matter of fact, after spending some time on biggerpockets I came to the conclusion that, as a beginner, I needed to get educated in 3 areas: -wholesaling, -fix/flip (emphasis on fix), and -buy and hold. I also found that these 3 areas are closely related and are not mutually exclusive. While I plan to focus on buy and hold, I picture a somewhat perfect scenario for me would be to find distressed homes the way a wholesaler would find them, fix them the way a flipper would fix them and then rent them out the way a buy and hold investor would rent them out.
Am I trying to bite more than I can chew? :-)
Thanks for the NTAREI referral, I'll check it out.
All the best... Immanuel
