Wondering how to actually get into real estate investing when you are just starting out? In this episode of the Relentless Growth Podcast, I broke down the five best ways to get started in today’s market, even if you are a complete beginner. Each one meets you at a different point depending on how much cash, time, and experience you have.

1. House Hacking

House hacking is still one of the best ways to get started, especially for young people. There are two main approaches I like. The first is buying a small multifamily, a duplex is ideal, moving into one unit, and renting out the other side. The second is buying a nice, slightly larger house, living in one room, and renting out the other bedrooms. I have seen people buy a big four- or five-bedroom house at a great deal, live in the master, and rent the other rooms for several hundred dollars each. Either way, your tenants help cover your housing cost while you build equity.

2. Wholesaling

I have a bit of a love-hate relationship with wholesaling, mostly because a lot of wholesalers do not really know what they are doing. But that is exactly why it can be a great entry point: you learn what makes a good deal, what people are actually looking for, and how to spot opportunity, all without needing much capital. Once you find good deals, getting them into the hands of experienced investors is not hard, and you get paid while you learn.

3. The Step-Up Strategy

You have to live somewhere, so why not buy through the lens of your first rental? Buy a house that would make a great rental, live in it for a year, fix it up a little while you are there, save some money, and then do it again. When you move, you keep that first house as a rental and step up into something slightly nicer. When I first got started, this is exactly what we did, we moved about five times in five years, keeping and renting each house along the way.

4. Build-to-Rent

Build-to-rent has been my favorite method for a while now. People sometimes compare paying for a brand-new house to buying a car at full price instead of a used one. But I think of it the other way: at this stage, I want the newer property with fewer problems and lower maintenance, the same way I want a newer car with a warranty so I am not constantly dealing with breakdowns. A new-construction rental means lower maintenance, fewer headaches, and better tenants from day one.

5. Partnerships

If you do not have the money to get started on your own, partnering with the right people is a powerful option. The most important thing with any partnership is being crystal clear about each person’s responsibilities and expectations up front. If one person brings the money and the other does the work, spell that out so nobody is surprised later. The biggest risk in a partnership is assuming you agreed on something and then watching it shift in a negative direction down the road.

Ready to Start Investing in Central Arkansas?

Whatever path fits you best, having a builder who understands investment property makes all the difference. If you are ready to house hack, build-to-rent, or develop your first deal anywhere in Little Rock, Conway, Bryant, Benton, or Central Arkansas, give us a call at 501-850-6364 or request a quote.