Choosing your First Real Estate Investment

What should your first real estate investment be? It all depends on your personal situation. Today, we’ll be breaking down the factors that should inform this important – and potentially life-changing! – decision.

First off, if you have a lot of time on your hands and you want to get deeply involved in real estate, we recommend looking at a plex with a few doors. This type of property usually yields a greater return and allows you to go straight for that BRRR opportunity.

If you have less money to spend, the condo play is always a very interesting option. You could look at a condo that’s already been built – maybe the current owner already has a renter. At that point, all you have to do is jump in and start collecting the cash flow.

Another option if you’re looking at condos is to get involved with a new development. Maybe it’s set to be delivered in a year or two, which always brings down the price. You’ll need to provide the down payment upfront, but the mortgage will only kick in down the road. This will give you even more time to accumulate additional funds for when that moment comes.

In a totally different direction, some property investors opt for a house. They enjoy the stability of having an entire home as a rental property since they typically appeal to families, who tend to stay put for longer periods of time.

Your ideal first investment simply boils down to what’s important to you, how much time you want to dedicate to real estate, and the returns you’re looking for.

What kind of financing can you get? How hands-on do you want it to be? Any investment in real estate is a great investment, as long as you do your due diligence.

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