All Forum Posts by: Raeshelle C.

a few thoughts from my end reading through this thread:

1. Know what you are getting into, you're going to have to deal with problems. Property managers do not solve everything. Real estate is work. 

2. Understand your purchasing power. Leveraging yourself with the majority of cash on hand can leave you in a bad spot. You don't want to be one bad move from blowing up. 

3. Realize you can't have it all. I read about looking for a turnkey, maintenance free, cash flowing, easily financed property. They are rare.

4. Learn the difference between strategy and tactics. The strategy is to use real estate to increase wealth. 1031 exchanges are tactics to save on taxes (assumes there are capital gains to tax to begin with). 

Check the ego at the door with real estate, it's very easy to loose your shirt.

Good luck 

I would watch the budget as well ( just a recommendation not a snarky comment) maybe try to save 5k of your own money or more. 

Im not sure how closing costs calculate out there but my idea was similar. 10k down, 209k property, dunzo...live-in tenants paying my monthly rent. 

Mind you I am in the Portland Metro area one of the craziest markets right now. My closing costs ended up being 16K and because I wanted the property so much I had to pull from my extra savings. If I had not had that I would have to go down to a much tinier loan amount. 

Luckily our market blew up after I bought the house at a very low price so I just sold it this may and made a great profit, however, I am already budgeting for some east coast properties and I am a doing this all by myself as well so I need to ensure that I can take a loss without having to run back to mom, not that she would help me out haha. 

I just recommend if its just you then you might want a healthier amount to start out with just for security reasons. Many factors that affect real estate investing are about to take place end of this year so my personal plan is mad savings and studying until we can get a grasp on the market and new tax bills in place. 

Good luck in your ventures!!!!!!

Find some nice MFH properties that you like that cash flow with 20-30% down.  

If you do FHA house hack, then obviously, less down but cash flowing properties will be harder to find since your monthly payment is higher.

@Raeshelle C.

Not sure how much properties are in your area but with $10k, you're best bet it to house hack with a FHA like others have mentioned.

Another option is to find motivated sellers who will do seller-financing.  less money out of your pocket.

Honestly, you should try to save up some more money so that you have more options and can get in a good property/deal.  With more money, you have more leverage.

 If you had options up the ying yang you wouldnt be asking about personal loan of $10,000 for RE.  One thing you are on to is its not the best to live next to your tenanyts....................lol.

Im always the kill joy...............lol.  Listen to Dave Ramsey- he says broke people shouldnt buy RE.    Borrowing $10,000 and thinking you going to get rich is ludicrous.