I was reading some of the posts on the beginners board, and noticed people give a lot of good advice/information.
I am interested in purchasing an investment property soon. I don’t know if it is the right time, since I’m not too knowledgeable on all of that yet. I actually got my real estate license about 3 years ago, but didn’t do too much with it, only a few sales here and there, as I was working on my MA degree. Fast forward a few years, I graduated- real estate was much more exciting to me. I decided to pursue that, and jumped in, taking classes, marketing, etc.
I’ve been keeping an eye out for properties as they come in that are good investments. What I’m wondering, are what are the financing options for this type of loan. My husband and I already have an FHA loan on our home we bought about 4 years ago. We make pretty good money, and our credit is great. We also have about 30k savings, but I’m not too keen on pulling it all out.
I am also wondering what the benefits/disadvantages are to purchasing with the intent to resell after renovations vs. purchasing with the intent of leasing. :help
Thank you for your help! :biggrin
I want to suggest to you wholesaling as you can become a wholesaler part time to begin with and it does not involve a lot of money to do it.
I agree with Gold River! Wholesaling is a great option and once you get a good nest egg going, try gathering some rental properties. Passive income can really jump start your real estate business. Wishing you all the best from Idaho!
So the first thing you should do is continue educating yourself more about investing. But don’t let your lack of knowledge or experience scare you. Just spend some more time reading blogs and guides on sites like BiggerPockets and you’d be surprised what you can learn in a short amount of time. And as soon as your start your investment, you’ll learn so much more - you learn best through experience. The best time to invest is when you understand the market dynamics, the worst time to invest is when you don’t.
Secondly, continue keeping your eye out for investment properties and positive cash flow. Mashvisor is a good source for finding investment properties.
Thirdly, if you’re able to make a down payment with your savings (not all but some) then I would suggest trying to do that. FHA loans are great for people who don’t have a lot of money to invest, but if you can avoid the PMIs then I would encourage you to do so.
Finally, the advantage of a fix-and-flip is the quick ROI, the disadvantage is the amount of work and money that has to be put in. The advantage of a buy-and-hold is the steady income while the disadvantage is needing to wait longer to appreciate (but it’s worth it).
I hope that offered some insight and I hope those sources can be of help.