Starting Out in REI

[Evan O'Brien]

Hello BiggerPockets Community!

Earlier this year I came to the realization that I’d like to invest in Real Estate. Just to share a little about myself, after I came to this realization I primarily focused on paying off all the consumer debt that I had (I paid off $45k in Student Loan Debt and a $6k car loan in full as of 2 weeks ago) . I am interested in purchasing single family and multi family properties that are approximately a 2-3 hour drive from Suffolk County, Long Island (which is where I live) within the $100k-$200k price range that are in need of being rehabbed.

For funding deals I'm planning on using my investment accounts which include a brokerage account (which I plan to invest a $1000 a month into stating in January), my Roth IRA (I plan to invest $500 a month into and I can pull out the principal amount that I invested without paying a 10% penalty or taxes), and a 401(k)/TSP loan through my job where I can take a loan on half of my TSP balance (currently have $20k in my TSP account). In the future I plan to utilize private funding once I've developed a set system for purchasing rentals and have a team in place.

I am hoping within the next 1.5-2 years I’ll have enough saved up through my investment accounts to start purchasing rentals. I also plan to utilize cash out refinances on each rental I purchase to repeat the same process over and over again with the same funds.

I do have a couple of questions and anyone’s feedback would be greatly appreciated. The first question I have is does anyone have any suggestions for markets to invest in they’re 2-3 hours driving distance from Suffolk County Long Island? And if so what experience have you had investing in these markets and what factors made you determine that this was a great market to invest in? The second question I have is to any experienced investors, what tips and information do you wish you were told when you first started investing in Real Estate?

I look forward to hearing anyone’s feedback!! 😁

[David Ribardo]

@Evan O'Brien welcome to the community! If you are interested in the Lehigh Valley, I run a sales team and property management business there. I'd be happy to answer any questions you have about the market or getting started.

Overall, the market is very competitive, with lots of out of state investors driving up prices across the Lehigh Valley. This has been across all asset classes - small distressed properties, large multifamily, and even warehouse spaces. It's been great for appreciation and this has led to rents increasing rapidly throughout this past year. We typically are seeing single family homes being sold for $95,000 and renting for $1,400 per month, with low taxes and favorable landlord / tenant laws.