All Forum Posts by: Shivateja Reddy

Thank you! I’ve got my well needed reality check after the initial excitement of spotting a deal.

Hi everyone,

I have recently started reading about real estate investing and been analyzing deals for a week or so. I want to try out value add + house hacking on a 1M+ sometime next year (I was planning to stop renting and buy a home for myself anyway). However, given my lack of experience, I'm worried about doing such a big purchase directly next year. I've started looking into much smaller deals just to get my hands wet and work my way up.

I've come across a deal from a wholesaler for 1bd/1ba SFH for $55K. It's a 1920 home that has been remodeled and sold at $135K early this year. The wholesaler says they're selling it because of financial distress. My plan would be to add a couple of bedrooms to the home and the typical 3bds in the area about $180K.

The problem is, the numbers look too good to be true and I'm worried that I might get scammed in some way that I'm not aware of yet. Should I get over my fears and just do it? Should I wait for some more time and munch on deals for a few more months?