Hello, I need some advice on angles to take when starting out in investing.
I am 27 years old. I purchased my home 4 years ago. I live in the Chicagoland area where home prices are soaring and appreciation is great. I am originally from a small town in Indiana where the home values are low/medium priced and you can make good cash flow buying single family homes/multi family units and renting them.
My question is this. I am torn on what what angle I should take to start out investing. Here are the options that I am interested in:
buy new(preconstruction) in up and coming areas, get a interest only mortgage, rent for a break even cash flow or minimal cash flow, pray for appreciation (My home that I live has appreciated $80K in the 4 years since the purchase.)
buy older single family properties/multi family properties with no money down or 5% down and rent for good positive cash flow
I have several people around me that are interested in investing as well. So I have money available to me. Family and close friends. Any suggestions/advice out there??
THANKS IN ADVANCE
Well one you are praying to make money on, and the other… if bought right yuo make money from the get go…
Appricaition is a game I don’t play. THats called speculation… I’m not that kind of investor… it is just too risky for me. You may be on the otherhand, and may do very well.
I would take the cashflow today and for the next 20 or 30 years, before I would break ever and hope for apriciation, and loss $$ if that doesnt happen. JUST ME THOUGH!! Many have speculated and become millionairs. … Im not that risk involved.Only you can know what you are looking for, and what kind of risk you can handle without it taking you out of the game.
Hope this helps,
Thanks Heather -
Do you do rentals as well? What types of areas do you find success in. I know Carlton Sheets says to start driving neighborhoods around where you live, but the homes are so expensive here, without a HUGE downpayment you can’t rent for a positive cash flow.
I would be buying in my home town, about 4 hrs away and having someone manage it for me. These homes don’t appreciate much, if at all, haha, but you do have a lot of renters in the area and can make $500-$1500 per month on some multi family units.
What is your experience, what works for you. I’d love to hear from others about strategies. THANKS